The Canal+ group had asked the State to lower the VAT on some of its subscriptions. On the contrary, it will increase and this increase will affect certain prices.
Canal+ informed its subscribers by mail that some of its prices were going to increase, indicates the newspaper Les Echos. And the group denies being at the origin of these increases.
“The tax authorities have informed us that the VAT rate applicable to some of our offers was now (…) 20% and no longer (…) 10%. This increase forces us to increase the price of your subscription,” the letter said.
A news that goes against the request made by Canal + which wanted to see its VAT reduced to 5.5% in order to better fight against streaming platforms such as Disney +, Netflix or Amazon.
Les Echos has done the math, this increase will lead to an additional cost of more than 200 million. A change in VAT which will be “absorbed by subscribers but also partly by Canal +”, understands the economic newspaper.
An increase of 2 euros per month
Bercy told Les Echos that “Canal+ had indeed asked the tax authorities to clarify the question of its VAT and the latter informed him of its vision in relation to the law”. “The group is not obliged to pass on this increase to its prices,” adds the Ministry of Economy and Finance.
It is the new subscribers and the non-committed who will see their subscription increase by around 2 euros per month. For subscribers hired for one or two years, it is Canal+ which intends to absorb the VAT increase.
Note that not all offers are affected since the formulas that contain Netflix and Disney+ are already subject to 20% VAT. It is especially the basic offer which will go from 20 to 22 euros per month.