VAT revenues in the first half of the year exceed their pre-crisis level

VAT receipts in France in the first half of 2021 were higher than those recorded in the same period in 2019, before the crisis. A sign of a solid recovery, underlined on Monday the Minister of Public Accounts Olivier Dussopt.

“If we are coming back to the pre-crisis production level more quickly than expected. It is because the emergency aid that we have put in place has been effective and the recovery plan is working well,” congratulated the Minister. Olivier Dussopt explained to support his point. “For example, you should know that over the first six months of the year for the activity from January to June. he VAT receipts as observed in July are already higher than those that we observed in 2019 over the same period.”

VAT driven by the reopening of the economy

That is a total of 106.6 billion euros for the past semester. An increase of 6% compared to the first half of 2019. And 2.4 billion euros more than the government’s own forecasts. “The VAT revenues are driven by the total reopening of the French economy,” the minister’s entourage told AFP. “Economic activity is up sharply compared to the previous month. A + 11.5% increase in turnover taxable with VAT between June 2019 and June 2021. Against -2.0% in May, compared two years earlier,” says the same source.

All sectors are concerned, according to the minister. Even if part of the first semester was covered by health constraints. “Obviously the event sector, accommodation, catering, have slowed down. But you have to keep in mind that in the second half of the year the constraints are overwhelmingly lifted,” added Olivier Dussopt.