French lawmakers back VAT relief for export-led wine and spirits businesses
The National Assembly adopted a government-backed amendment to the 2027 state budget bill covering companies that generate more than 85% of annual sales from exports, including the cognac sector.
Relief for exporters
French deputies adopted the amendment on Monday with government support. Submitted by Renaissance deputy Sandra Marsaud of Charente, it would exempt wine-sector and alcoholic-beverage businesses whose exports account for more than 85% of annual sales from VAT on purchases and operations needed for production, including goods, processing services, blending and distillation.1
A VAT-free purchasing mechanism already exists, but Marsaud’s amendment says an EU directive limits it to goods bought by exporters themselves rather than purchases made by their suppliers. Public Accounts Minister David Amiel said the proposed measure would primarily ease cash-flow pressure on the businesses concerned, particularly amid the cognac sector’s crisis.1
Budget text may still change
Cognac sales, almost entirely export-dependent, have declined for 5 years; volumes fell 20% in the second half of 2025 compared with 2024. The source attributes the pressure to higher US tariffs, a Chinese surcharge on spirits and a broader decline in alcohol consumption. Customs data put 2024 cognac exports at about €3 billion, with 36% going to the United States and 20% to China.1
The relief is not final. The government is expected to use Article 49.3 of the Constitution or ordinances to pass the 2027 budget, which could remove changes introduced by deputies during parliamentary consideration.1
Sources
Written by the Dionysus editors from the sources above.
