CANAL+ Pays EUR 363 Million to End French VAT Dispute

CANAL+, a French-based global media and entertainment company, announced that it has reached a settlement with the French Tax Authorities over the VAT rate applicable to its television subscription services. The agreement between CANAL+ and the French Tax Authority is the result of the clarifications issued in September 2025 and joint work to define and operationalize catch-up television.

Effects of the Agreement

After several years of negotiations with the French Tax Authorities, CANAL+ has agreed to pay EUR 363 million in VAT, with the payment schedule to be determined. Following the settlement, a reduced 10% VAT rate will apply to the CANAL+ services.

As the CANAL+ stated in its public announcement, the French group does not anticipate significant further tax adjustments or the need for additional provisions. This provides greater clarity for investors and supporting operational stability as the company integrates MultiChoice, Africa’s leading entertainment platform, that offers a range of services including DStv, GOtv, Showmax, M-Net, SuperSport, Irdeto, and KingMakers, and strengthens its global pay-TV position.

Even though the amount, which will be recorded as an exceptional expense in this year’s accounts and for which the payment schedule is yet to be determined, is substantial, it remains well below the estimated maximum of around EUR 1.3 billion that the French Tax Authorities could have theoretically demanded from the group.

Conclusion

Overall, the settlement marks a significant step toward legal and financial certainty for CANAL+. By resolving a long-standing VAT dispute at a cost well below the potential maximum exposure and securing confirmation of a reduced VAT rate for its television subscription services, the group has substantially reduced regulatory risk in France.

On the other hand, from a VAT perspective, the agreement confirms that television subscription services, including catch-up TV when properly defined and structured, can qualify for a reduced VAT rate under French law. Ultimately, the CANAL+ outcome may encourage other companies with similar disputes to seek settlements rather than prolonged litigation.

Source: London Stock Exchange, CANAL+