femme-valise-paris-eiffel-bordeaux-business

The Interministerial Committee on Tourism announces new measures for the tourism tax-free system

In 2020, the Interministerial Committee for Tourism reports on the sector over a turbulent year. Indeed, following COVID-19, tourism has undergone difficult times. The period was punctuated by doubts and uncertainties for both travelers and professionals. The tourism sector is one of the key sectors of the country’s economy. In particular, it makes it possible to promote the country’s cultures and territories. Indeed, it is an inconsiderable capital that represents no less than 3 million jobs carried by the annual reception of more than 90 million tourists from all walks of life.

Thus, the Interministerial Committee of Tourism, brings together the ministers concerned, elected officials and professionals of the sector. It met on 17 May in Matignon to announce major measures to relax the tourist tax-free system. These measures are significant and have a positive impact on the growth in tourism spending and the attractiveness of France. Thus, the Interministerial Committee of Tourism works to economically enhance the impact of tourism on the country. Indeed, France is the world’s leading destination with nearly 90 million tourists in 2018, France shines abroad. However, the country ranks 3rd in terms of revenue behind the United States and Spain.

Interministerial Committee on Tourism figure
France attracts many tourists every year

The Interministerial Committee on Tourism, between objectives and attractiveness

The Interministerial Committee for Tourism acts on 6 priority areas of action to increase the attractiveness of France. This attractiveness is based on several reasons. First of all there is a richness of culture, tangible and intangible heritage. In addition, there is also the vitality of artistic creation, cultural and creative industries, language, the art of living… In order to strengthen this attractiveness, the Government is focusing on 6 priority areas:

  • The quality of the reception and the security of the sites;
  • The structuring of the tourist offer;
  • State investment support;
  • Training and employment;
  • Support for digitization and information sharing;
  • Access to holidays for as many people as possible.

The tourist tax-free in France, framed by procedures

The Interministerial Committee for Tourism therefore supervises the actions to be put in place. Tourists passing through France can benefit from an exemption from the payment of value added tax (VAT). However there are certain conditions. This also applies to certain products. Only tourists from a non-EU country, regardless of nationality, or a third state (French Polynesia, New Caledonia, Wallis and Futuna, Saint-Pierre-et-Miquelon, the French Southern and Arctic Lands, St. Martin and St. Bartholomew) are affected. You must be at least 16 years old. You must also be in France for a stay of up to 6 months and have a valid IDENTITY document at the time of purchase.

The affected products must be sold at retail, both tourist and non-commercial. The limit on the number of a single item purchased must not exceed 15 units. The provision of services, tobacco, weapons, ammunition, cultural property and petroleum products is prohibited. Purchases are made on the same day and must be in excess of 175 euros, all taxes included (TTC).

To obtain the tourist tax, you must follow the following procedures:

  • When you buy: You have the option to buy the product directly tax-free, so the product is cashed tax-free (HT);
  • On departure: The merchant gives you an export sales slip, allowing you to refund taxes when you leave the European Union. Simply insert the export sales slips into a PABLO terminal. VAT will be refunded at a currency exchange counter or by bank transfer.

The Interministerial Committee for Tourism and the measures announced encourage the expansion of Tourist Zones in Paris and in major regional cities

France proposes the highest tax-free threshold in Europe and the rules of application are very restrictive. These regulations do not encourage the expenditure of tourists, yet relay the growth of the tourist clientele. The measures adopted must strengthen France’s position. They must also reach the target of €60 billion in tourism spending in 2020. The potential is undeniable and the Interministerial Committee for Tourism must implement appropriate actions. International tourism spending is estimated at €56.2 billion in 2018, 40% of which comes from non-EU nationals. For comparison, the tax-free threshold in Germany is €25. In Italy it is 155 € and no legal threshold in Spain and the United Kingdom.

The Interministerial Committee on Tourism therefore proposes three significant measures to consolidate our first position as a global destination:

  • The reduction of the tax-free threshold from 175 to 100 euros from 2021, thus improving France’s competitiveness with its European neighbours. The zero-rated service will encourage middle-class foreign customers to consume. This will improve market dynamics;
  • The extension of the purchase period to 3 days from 2020. Current regulations impose a tax-free rate on the day of the purchase of the product. This is a significant and complex constraint for tourists, most of whom simply give up. This period of 3 days brings comfort to tourists. It allows them an easier tax refund during their stays;
  • An increase in the cash reimbursement ceiling to €3,000 in 2020 in order to increase spending on French territory.

The Trade Alliance encourages the expansion of tourist areas in Paris and major regional metropolises. In parallel with the actions of the Interministerial Committee of Tourism, this expansion allows the Sunday opening of shops. The aim is to adapt to the expectations of increasingly mobile and demanding foreign consumers. Sunday is now the 2nd most important day of the week. Indeed, the overall turnover is growing by more than 10%.

Interministerial Committee on Travel Tourism

Key tourism figures in New Aquitaine and Gironde

Nouvelle-Aquitaine benefits from an undeniable international influence, due to its many cultural, heritage and gastronomic riches. Thus, it is the first tourist destination in France, on the Atlantic coast with nearly 170 million overnight stays for 27 million tourists in 2017. The region ranks 5th in the national rank for the reception of foreign tourists and 2nd place for the overnight stays of French residents.

The Gironde thus represents 10,725 km², the largest department in France (2% of the metropolitan territory and 12% of the neo-Aquitaine territory). As a result, 6.2 million passengers passed through Bordeaux airport in 2017 (+7.7% compared to 2016) and 12 million passengers at Bordeaux Saint-Jean station. Here are some of the department’s 2017 figures:

  • 250,000 commercial beds, or nearly 20% of the region’s supply;
  • 2.7 million stays and 4.4 million hotel nights;
  • 780,000 stays and 4.8 million overnight stays in camping;
  • A total of 6 million stays and 32.6 million overnight stays over the year;
  • $56.60 spent on average per day per person;
  • 1.8 billion euros of annual tourism consumption.

The relaxation of the tourist tax exemption should therefore make it possible to considerably improve the conditions for refunding taxes to foreign tourists outside the EU. These measures will improve tourism dynamism and grow the economy. Jobs will be created, which will improve living conditions and purchasing power. The Government must therefore continue unabated to make tourists’ stays more pleasant and therefore more consumer-oriented.

Kévin HEUGAS – Bordeaux BUSINESS

Sources:

Government website – Interministerial Committee on Tourism

Economy.gov

New Aquitaine – Key Tourism Figures (2017)
http://obs-aquitaine.fr/etudes/etudes/chiffres_cles_2017.pdf

PABLO-I – 09/24/2013

Abonnez-vous à la Newsletter