VAT Cut In Corsican Restaurants

01 July 2009

Dining in Corsica should be cheaper from today following a cut in VAT for restaurants and cafes from 19.6% to 5.5% - making your holiday money go a little further. The French government has made the move to try to entice more Britons to holiday in France this summer. Although restaurants do not have to pass on the savings to customers, it is believed the majority will to stay competitive and already some restaurant chains have reduced prices by as much as 20%.

The tax applies to food but not to alcohol. France has campaigned for seven years to get the go-ahead from European Union partners to lower value-added tax for restaurants and cafes. It is anticipated that the reduction will cost the French state 2.38 billion euros a year but restaurant owners are set to employ around 40,000 more people.