France VAT Rates on Forestry Sector Goods and Services: Reduced and Standard Rates

The French government, specifically the Tax Authority, released guidelines on VAT rates applicable to the supply of goods and services in the forestry sector. These guidelines clarify that different VAT rates may apply to works and other services related to forestry operations, as well as goods used, and deliveries and other services related to wood management.

Applicable VAT Rates

As of May 28, 2025, new VAT rates have been applied to various goods and services within the forestry sector. The guidelines categorize operations into two main groups. The first category relates to goods and services related to forestry exploitation.

This category includes activities such as soil preparation, planting, manual or chemical weeding, pruning, application of phytosanitary products, and specific maintenance tasks, such as clearing and ditch cleaning, which are generally subject to a reduced VAT rate of 10%. 

The 10% reduced rate also applies when services are provided to agricultural operators or authorized associations focused on forest fire prevention. However, some activities, such as tree marking and the creation of storage areas, are subject to a 20% standard VAT rate.

The second category refers to activities relating to wood management. Management of products intended for uses other than heating, such as sawdust and wood flour, is taxed at the 20% standard VAT rate. In contrast, firewood and similar heating products are subject to a reduced 10% VAT rate, while specific items, such as pointed stakes used in agriculture, are taxed at an even lower rate of 5.5%. Transportation of wood, expert assessments, and sales organization are taxed at the standard VAT rate.

The guidelines further refer to other related guidelines, which provide additional details on VAT rates for agricultural and forestry operations. Moreover, these additional guidelines clarify in which situations certain activities do not qualify for reduced VAT rates. Consequently, if they do not meet the defined criteria, they are subject to the standard VAT rate.

Conclusion

The guidelines provided by the French Tax Authority provide all the essential information for all taxable persons operating in the forestry sector or industry. Therefore, taxable persons affected by the changes in applicable VAT rates should carefully examine the exemption rules and determine if their activities qualify for the reduced VAT rate or if they must apply the standard rate.

Source: Official Bulletin of Public Finances - Taxes