French public ruling – VAT on supply of board games which include a book
The French VAT authorities provide guidance on the definition of books and the VAT rate applicable to the supply of board games for VAT purposes
The French tax authorities issued a public ruling regarding the VAT rate applicable to board games which include a book.
In France, supplies and rentals of books are subject to the reduced VAT rate of 5.5%. The rate applies to physical and digital books.
The French tax authorities specify that a book is defined as a set of printed matter, illustrated or not, published under a title, the purpose of which is to reproduce a work of the mind by one or more authors with a view to teaching, disseminating thought and culture. The definition extends to publications which include an editorial contribution.
According to the French tax authorities, a product that is primarily a game and whose editorial contribution is not significant enough to constitute a work of the mind cannot be considered as a book eligible for the reduced rate, even as part of a printed set.
Therefore, a board game that is made of a set of elements that include a book must still be viewed as a game and cannot benefit from the 5.5% VAT rate.
KEY TAKEAWAY
A case-by-case analysis is often recommended in order to determine whether the manual book can be considered as a book.
