Question 17424 — value added tax

Summary

Ms. Valérie Beauvais draws the attention of the Minister of Agriculture and Food to the difficulties encountered by the equine industry linked to the application of the normal rate of value added tax (VAT). The equine industry is an important sector, which generates nearly fourteen billion euros in turnover per year and contributes to the attractiveness of rural areas and the transmission of educational and sporting values. There decision of the Court of Justice of the European Union of March 8, 2012 led to an increase in VAT rates in the equine sector by 14.5 points for most activities in the sector. This increase imposed a significant increase in prices in the various sectors of activity in the sector. The equine industry is experiencing difficulties (decline in activity, employment, increase in illicit sales practices) which have been aggravated by the application of the standard VAT rate. According to the French Horse and Equestrian Institute, domestic demand for racehorses has been declining since 2010, the galloping and equestrian establishment sectors have seen their salaried workforce drop by 6% and 4%, respectively, between 2012 and 2015 and the number of riders licensed to the French Equestrian Federation has been declining since 2013. VAT at the standard rate is particularly detrimental to the racing sector, particularly in the trotting sector. In January 2018, the European Commission announced its desire to reformulate European VAT rules, which have become obsolete, and proposed adopting a new, more flexible regime that leaves more room for maneuver to States regarding exceptions or reduced rates applied to certain sectors. Consequently, she asks him to please indicate the timetable and extent of the change in VAT rates, as well as the scope of activities which could benefit from reduced rates.

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