The French Equestrian Federation (FFE) welcomed on Thursday the probable return in 2024 of a VAT rate of 5.5% on the teaching activities of equestrian centers.
We are delighted, it is a fair return for an adapted VAT whereas it was particularly unfair for horse riding to be the only sport subject to full rate VAT (20%, Editor’s note), Frédric Bouix, general delegate of the FFE, reacted to AFP.
Excellent news for the 2 million French people who practice horse riding regularly or occasionally: pony clubs and equestrian establishments will once again benefit from a reduced VAT rate on their activities from January 1, 2024, a comment on Twitter) the Minister of the Economy Bruno Le Maire.
In the first part of the draft budget for 2024, adopted on Friday without a vote after the government appealed to article 49.3 of the Constitution, the executive notably retained an amendment from Les Républicains MP Vronique Louwagie, who proposed to re-establish the reduced VAT rate for all activities of equestrian centers.
The end of a two-speed diet
Even if the passage of the texts in Parliament resembles an obstacle course since the presidential camp lost the absolute majority in the Assembly, 49.3 allows the government to choose the amendments it keeps or rejects and the Ms Louwagie’s proposal should therefore remain in the final text.
Since 2013, following a ruling by the Court of Justice of the European Union, the activities of equestrian centers have been subject to two distinct VAT rates depending on the activities, a two-speed diet denounced by professionals. All supervised activities, whether teaching or accompanying walks, were taxed at 20%, Mr. Bouix recalled on Thursday.
An overhaul of the European directive on value added tax made this new harmonization possible at a reduced rate of 5.5%. According to the French Equestrian Federation, France has 6,000 equestrian centers and pony clubs for more than 700,000 licensees.
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