Canal+ has written to its subscribers to warn them that they will have to pay more if the increase in VAT on pay television wanted by the government is put into effect. “If this increase in VAT, based on the price excluding taxes of the subscription and levied on behalf of the State, were to be confirmed, we would be forced to pass it on to the final price of your subscription,” wrote the audiovisual group in this email sent Thursday evening to its customers.
This increase, from 10% to 20%, is provided for in the finance bill presented Thursday by the government, which must still be ratified by Parliament. This hypothesis angered Canal+, which threatened to reduce its investments in cinema and sport.
A reduced rate in the government’s sights
“We deeply regret this damaging decision by the government which would be imposed on us,” assures the group to its subscribers. To “anticipate this possible regulatory development”, Canal+ has also updated its general subscription conditions. These warn that a possible increase in VAT “will be reflected in the subscriber’s bill and will therefore lead to an increase in the price including tax”. “The subscriber will, however, have the right to cancel his subscription in this case,” it is specified.
Currently, subscriptions to traditional pay television, that is to say which broadcast their programs in real time, benefit from a reduced VAT rate of 10%. The rate for platforms whose model is built on on-demand programs (Netflix, etc.) is 20%. Canal+ offers both types of service, but the reduced rate of 10% applies to most of its activities. The 2027 finance bill plans to “simplify the VAT regime applicable” to pay television by removing this reduced rate, and Canal+ would be the main operator affected. This is not the first time that the issue has pitted the group against the administration: it had already been the origin of a long dispute between Canal+ and the tax authorities, which ended in 2025, with the group agreeing to pay 363 million euros.
