Value Added Tax (VAT), a tax to be refocused on its objective of generating revenue for public finances

Value Added Tax (VAT) is a general consumption tax charged directly to customers on the goods they consume or the services they use in France. The substantial changes in its budgetary and legal framework, as well as recent developments in the economic situation, marked by the health crisis, the energy crisis and inflation and by growing concerns about long-term issues such as climate change, have led the Council of Mandatory Contributions (CPO) to take an interest in this tax, eight years after its previous report on VAT. The findings of this report can be summarised in two key ideas.