TVA Drops

carte-du-jourThis week, France’s new restaurant tax went into effect, lowering the TVA (taxe sur la valeur ajoutée, or value-added tax) that restaurant owners pay the French government from 19.6 percent to 5.5 percent.  In theory, this should translate into cheaper bills for diners.  In theory.  So far, though, the French press has reported that very few cafés and restaurants have lowered their prices.  Some restaurateurs have said that they are using the tax savings to hire more help, while others have explained that they are busy reprinting new menus and, well, what with vacations looming, this could take a while.

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