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American-born travel journalist and guidebook author Heather Stimmler-Hall created the Secrets of Paris in 1999 to share the hidden side of the City of Light. Discover what you've been missing:

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Calendar of Paris Events

Book NOW for September 5-6
The American Church of Paris is hosting A Prarie Home Companion radion show with Garrison Keillor for two dates, September 5th at 8pm and September 6th at 4pm. Tickets are €31, book as soon as possible, space is limited.

July 3
My favorite English book store, Abbey Bookshop (29 rue de la pArchiminerie, 5th), is celebrating its 25th anniversary with a street party featuring authors Stephen Clarke (Year in the Merde and his new book Dirtie Bertie) and Heather Stimmler-Hall (with the first new copies of Naughty Paris!) today from 7pm until we run out of sangria. Free entry. RSVP on Facebook.

June 25 -July 29
Les Soldes! The annual summer sales take place this year for five weeks throughout France, primarily in clothing stores, but pretty much everything is on sale now. 

Through August 31
Between the Lines and the Trenches, a very intimate collection of personal letters, notebooks and photos from the trenches, many never published before. At the Museum of Letters and Manuscripts (222 Boulevard Saint-Germain), through August 31st, entry €7.

CLICK HERE FOR THE FULL CALENDAR

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« Misadventures of French Barging | Main | Staying Cool in Paris »
Thursday
Jul022009

TVA Lowered in French Restaurants

The Value Added Tax (TVA en français) in French restaurants has just been lowered from 19.6% to 5.5%. What does this mean for you, the consumer? It means that prices in your local French bistro may go down a few euros. Or not.

The law which came into effect July 1st does not require restaurants and cafés to "pass the savings" on to their clients. In fact, many restaurant owners will use the extra savings to hire more staff (the economic minister predicts 40,000 new jobs over the next two years), improve the quality of their food, or renovate their properties (bonjour air conditioning!).

But don't let that get you down, there are still plenty of establishments who will use discounted menus to bring in clients who have been shying away from dining out during the crise économique. Today I noticed a big sign promoting lowered prices at the Ristorante Bottega aross the street from me (the same group as Bistro Romain and Léon de Bruxelles). The lowered VAT will not apply to wine or other alcoholic beverages. Diners will most likely see it applied to the plat du jour, basic dishes and desserts, plus coffee. The gourmet and haute cuisine restaurants will most likely not lower their prices since their costs are much higher and there are fewer people dining in that top price range.

According to the authorities in the food industry, restaurants will have signs that clearly state «la tva baisse, les prix baissent», and will note on their menus which items have been reduced. It will be interesting to see how and where this is applied. This morning when stopping into my local café for a noisette, I saw hand printed signs saying café "€1" (usually it's €1.20 at the bar). I always leave €1.50 anyway, and did so today (but nice anyway in case I'm low on loose change). So voila, so far so good. Has anyone eating out since July 1st noticed anything yet? 

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Reader Comments (5)

I ate out at a bistro/café in the Marais last night and they had signs posted with their old prices, alongside the new prices. It wasn't a fast-food or chain restaurant, and I was really surprised (since this place does pretty good business as it is.)
July 3, 2009 | Unregistered CommenterDavid
Yes, we dined out on Wednesday night at our fave restaurant in the 17th, "A Table" on Rue des Dames, who reduced their prices on all their dishes between 5% and 12% while keeping the quality of the food and the service as high as it ever was.
July 3, 2009 | Unregistered Commenterdaen
So far I've noticed my local cafes and bistros are stubbornly resisting lowering the prices - but have spotted that it's usually the upmarket restaurants that are sporting the "la tva baisse, les prix baissent" stickers. Strange?
July 3, 2009 | Unregistered CommenterGraham Cooper
No lowering of prices at Ashiana in Neuilly on 7/3.
July 6, 2009 | Unregistered CommenterParisBob
The majority of restaurants I like seem to have lowered their prices, but only on à la carte items - the menus, overall, seem to have stayed the same price. Sadly, this means for my lunch, getting the "formule déjeuner" only saves me about 50 centimes now. Then again, maybe now I'll be fine getting just one course and helping out my waistline.
July 7, 2009 | Unregistered CommenterOmid

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