Canal+ fails to secure reduced VAT rate

An amendment that would have seen the implementation of a reduced VAT rate charged to Canal+ subscriptions has failed to secure support from the French legislature. 

The country’s National Assembly last week rejected an amendment tabled by representative Patrick Bloche, proposing that the VAT rate charged to subscriptions should be reduced on the grounds that Canal+ was facing competition from BeIN Sport, which benefited from “unlimited” funding.

The budget rapporteur, Christian Eckert, said that Canal+ was not the only broadcaster to support cultural production in France and that the group’s operational profit of €663 million in 2012 did not indicate that it was struggling.

French representatives did accept an amendment reducing the rate of VAT on cinema tickets from 7% to 5.5%.

Tags: Canal+, France, VAT