Below is an overview of the VAT (Value Added Tax) rates in Monaco:
| Category | VAT Rate | Description |
|---|---|---|
| Standard Rate | 20% | Applies to most goods and services provided in Monaco, aligning with the VAT rates in France. |
| Reduced Rate | 10% | Applies to certain goods and services such as restaurants, transportation, and some domestic services. |
| Lower Reduced Rate | 5.5% | Applies to essential goods like food products, water, and certain cultural services (books, cinema tickets). |
| Super Reduced Rate | 2.1% | Applies to specific categories such as medicines reimbursed by social security, and newspapers. |
| Zero Rate | 0% | Applies to exports, where goods and services delivered outside of Monaco are not subject to VAT. |
| Exempt Goods and Services | Exempt | Certain goods/services are VAT-exempt, including healthcare, education, and certain financial services. |
Additional Notes:
- Standard Rate (20%): This is the general VAT rate in Monaco, similar to the rate applied in France, reflecting Monaco’s close economic ties with France.
- Reduced Rates (10% and 5.5%): Lower VAT rates are applied to support specific sectors like tourism and essential goods.
- Super Reduced Rate (2.1%): Very low VAT rate for critical goods like certain medicines and newspapers, making them more accessible.
- Zero Rate: Zero-rated items are usually for exports and services provided outside Monaco, allowing businesses to claim VAT credits on their inputs.
- Exemptions: No VAT is charged on exempt items, and businesses dealing exclusively in exempt goods/services cannot claim VAT credits on their inputs.
This table summarizes the VAT structure in Monaco, reflecting the principality’s alignment with French VAT regulations.