Taxation trends: VAT in France and new EV taxes in the UK

In France, Value Added Tax (VAT) remains the primary source of state revenue, functioning as an indirect tax on consumption. Unlike income tax, VAT is included in the final price of goods and services, meaning it is paid by consumers regardless of their income level. The distinction between prices excluding tax (HT) and including tax (TTC) is a fundamental aspect of daily transactions.

Regarding automotive taxation, the United Kingdom is transitioning its fiscal policy for electric vehicles (EVs). Following the end of major tax exemptions, EVs will be subject to Vehicle Excise Duty (VED) starting in April 2025. Furthermore, the UK government plans to introduce the Electric Vehicle Excise Duty (eVED), a new per-kilometer tax, beginning in April 2028. This move aims to rebalance the tax burden as EV adoption increases, potentially serving as a model for other nations like France, which currently relies heavily on fuel taxes.