Politics · France · 9 hrs ago
French lawmakers back VAT relief for export-focused drinks firms
France’s National Assembly approved a VAT exemption for export-focused drinks businesses as part of its debate on the 2027 budget.
It would cover wine and alcohol companies that make more than 85% of their sales abroad, including cognac producers.
The measure is intended to ease cash-flow pressure by covering more of the purchases and production services these businesses need.
Cognac sales have fallen for five years, with volume down 20% in the second half of 2025 compared with the same period a year earlier.
Higher US tariffs, a Chinese surcharge on spirits and weaker alcohol consumption have all weighed on sales.
The government supported this relief, but it may still be removed because the government could use special powers to pass the budget and erase changes made by lawmakers.
French lawmakers approved a VAT exemption for wine and alcoholic-drink companies that export more than 85% of their sales.
The government supported the measure, which was proposed in an amendment to the 2027 budget bill.
The exemption is intended to ease cash-flow pressures by covering purchases and operations needed for production.
Cognac sales have fallen for five years, including a 20% drop in volume in the second half of 2025 compared with the same period in 2024.
- Who
- French lawmakers approved the measure. The government supported it.
- What
- A VAT exemption for wine and alcoholic-drink firms that export more than 85% of their sales.
- When
- Monday, November 2; the article was published in 2026.
- Where
- France's National Assembly.
- Why
- To ease the cash-flow pressures of export-focused firms by covering purchases and operations needed for production.
This story does not have two clearly opposing sides.
Cognac exports were worth about €3 billion, according to customs data.
Cognac sales fell 20% in volume compared with the same period in 2024.
Lawmakers approved the VAT exemption with government support.
- Export threshold
- More than 85% of sales
- Budget bill
- 2027
- Cognac sales
- Down 20% in volume in the second half of 2025 compared with the same period in 2024
- Cognac exports
- About €3 billion in 2024
- Key export markets
- United States: 36%; China: 20%
What people are saying
The measure presented here mainly helps ease the cash flow of the companies concerned, which is obviously very important in the crisis the cognac industry is going through.