Eating out in French resorts just got cheaper
Monday 18 May 2009
President Sarkozy has told France's 200,000 restaurant owners to pass on the drop in restaurant VAT to customers from July 1.
 Skiers who are budgeting for next season's ski trip will be breathing a sigh of relief, as the
sales tax on restaurant and cafe bills in France will fall to 5.5 percent from 19.6 percent. This could reduce the cost of a plat du jour by 10 per cent and will welcomed by UK tourists who are feeling the pinch because of the strong euro.
Under pressure from the Government, the catering trade will apply to the full VAT reduction to many everyday items, including the plat du jour, basic entrées and desserts, plus coffee. “A customer should be able to order a meal which is entirely subject to the full VAT reduction,” Hervé Novelli, the Trade Minister told Times Online. For example, the price of an ordinary dish of the day such as a steak frites should drop from about €15 ( approx £13) to €13.20 (approx £11.60). If you are partial to a vin chaud, then be aware that the tax bonus does not cover wine – which accounts for 20 per cent of restaurant income – and the universal 15 per cent service charge will still be applied, with the tip added on top of that. All things considered, that packed lunch on the chairlift, might start to look more appealing again!
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