France lowers the VAT on restaurants

France has decided to lower the VAT on restaurant meals from 19.6% (the standard VAT) to 5.5% in an effort to stimulate the sector that is suffering from the difficult economic times (and since many years from the French 35 hour working week). The new VAT should take effect already on July 1. The VAT on wine will unfortunately not change but remain on 19.6%.