Canal + will increase the price of subscription to the encrypted channel, the fault of a passage of the VAT rate from 10 to 20%.
Under the obligation to collect VAT on behalf of the Public Treasury, Canal+ will increase the price of certain subscriptions, and this was not in its plans. Vivendi’s subsidiary “was informed by the tax authorities on April 21, 2022 via a rescript that the VAT rate applicable to some of its offers would now be 20% and no longer 10%“, announced the group on June 13.
At present, Canal+ is currently analyzing “the scope and consequences of this letter, and in particular the possible remedies”. In a press release, the group explains that it has sent a communication to its subscribers whose contract expires soon to inform them of the situation. “These will be notified of the precise impact on their price of this increase in the VAT rate within the time limits provided for by the general conditions of subscription”, he explains furthermore.
A blow for Canal+, which had been campaigning for many years for a VAT rate of 5.5% but raised to 10% in 2011. According to The echoes, the Ministry of Finance informed the group led by Maxime Saada that this rate should be multiplied by two. Bercy, however, indicates that “the group is not obliged to pass on this increase to its prices”.
In detail, the increase, probably €2, will concern the subscription to Canal+, including the encrypted channel, offered as a standard offer to which are added the sports and film series packs. Offers including Netflix Disney+ and Canal+ Series are not affected because these platforms are already subject to 20% VAT. For BeIN Sports, no change, the channel remains on its side at 10%. New and current uncommitted subscribers will see their bills increase in a few months. Canal+ should save customers engaged for 1 or 2 years by absorbing the increase.
In the 2021 finance bill, the State had announced its intention to put in place a very specific rule: “a single offer including elements other than accessories covered by different VAT rates is applied, in its entirety, the highest VAT rate”. The objective was to sanction ISPs caught red-handed over the reduced VAT with the press. Canal+ had so far succeeded in keeping VAT at 10% on the encrypted channel. But Bercy now believes that the growing catalog of films and series in replay of the channel, is similar to a provision of content close to Netflix and Disney +.