In addition,
Decrease vat rate, rise gas:
The 1st of the month always coincides with changes in everyday life. Consequently, Tariff increases or decreases provided by the authorities. Consequently, Provence Take stock of everything that changes this Friday, August 1, 2025.
Decrease in rates of booklet A and LEP – Decrease vat rate, rise gas
The rate of booklet A will drop again, to 1.7% from August 1, against 2.4% currently. Nevertheless, This drop, unprecedented by its magnitude since 2009, is the second this year, started with a 3%rate. However, The rate of booklet A is also valid for the sustainable and solidarity development booklet (LDDS). In addition, “The rate of booklet A will remain significantly higher than inflation. However, which has dropped significantly during the past year,” said the Ministry of the Economy in a statement.
“The fixing of the rate of booklet A at 1.7% will therefore continue to protect the purchasing decrease vat rate, rise gas power of its holders“. Meanwhile, For his part, the Banque de France, in a press release published shortly before that of the ministry.
The rate of the popular savings book (LEP), reserved for modest households, will drop from 3.5% to 2.7%. Meanwhile, This rate has been the subject of one “boost“, because its theoretical formula brought it out to 2.2%.
VAT increase on gas. Therefore, electricity – Decrease vat rate, rise gas
As of August 1, 2025, France aligned itself with European law and harmonizes VAT levels on electricity. Consequently, On the gas and electricity subscription, the rate has so far been established at 5.5% against 20% for consumption. Nevertheless, The rates will therefore be harmonized, starting this Friday, and will drop entirely to 20%.
But to compensate for this increase in the VAT linked to the subscription. the government establishes a lowering of the excise (consumption tax) and Turpe (price for the use of decrease vat rate, rise gas public electricity networks). The excise will go from € 33.70/megawatt hour to € 29.98/MWh on August 1, 2025. Turpe, which experienced an increase of 7.7% in February 2025, will also drop by around 2.5%. Consequently, the price per kilowatt hour will spend from € 0.2016 to 0.1952 €.
The impact on individuals will thus depend on their consumption: for low consumers. the increase in the share of the subscription will be more visible. Conversely, for heavy consumptions, the bill will drop. “”The drop in the price per kilowatt hour will have more impact on the amount of consumption. the increase in the subscription will be felt less“, highlights the official website of the French administration.
Raising gas
Partly caused by this increase in VAT, the gas subscription rate is preparing to increase. According to the Repère price published by CRE, the subscription for cooking and hot water thus goes decrease vat rate, rise gas from € 117.93 per year in July to € 134.14 in August. An increase which is also found for heating, going from € 290.83 per year to € 330.8.
Conversely, the average price including tax per kWh for cooking and hot water drops from 0.13970 euros in July to 0.13920 euros in August. Same trend for heating, with 0.10801 euro in August against 0.10,10,852 euros in July.
The average landmarks prices are also slightly increased with a price established at € 141.48/MWh including tax in August, against 136.36 euros/MWh TTC last month.
The back -to -school allowance paid in August
The back -to -school allowance will be paid the Tuesday August 19 To parents of children living in mainland France. Guadeloupe, Guyana and Martinique. This year, its amount was revalued up to 1.7% After having increased 4.6% in 2024. The sum paid to parents depends on the age of their decrease vat rate, rise gas children. Income conditions are also required.
The amounts are € 423.48 per child aged 6 to 10; € 446.85 per child aged 11 to 14; € 462.33 per child aged 15 to 18 For this school year 2025.
The aim of this boost is to help families cope with the cost of the start of the school year. the prices of supplies. Each year. Nearly 3 million households and 5 million children are affected By this premium paid by the Family Allowance Fund (CAF) or the Agricultural Mutual (MSA).
Additional costs for refractories to the Linky clock
From this Friday. August 1, additional costs will be invoiced on the electricity bills of households which have not replaced their old counter by a Linky counter.
Every 2 monthsthe following amounts will be invoiced:
– and Fixed amount of € 6.48 excl. corresponding to the “specific management” of the old generation decrease vat rate, rise gas counter;
– additional costs of € 4.14 excl. Only if the home has not transmitted its consumption index to Enedis for over a year. This index statement must be carried out at least once a yearyourself. by opting for a statement by a home technician.
A Public Treasury Payment
It is not every day that taxes pay you a sum of money into your. bank account. And yet, for many French people, the good news has already fallen on July 25 or will fall on August 1.
There are several reasons for this. You should know that the tax reduction or the tax credit takes place in two stages. “”Some of these advantages (donations to works, home employment, etc.) are reimbursed in two stages: an advance in January then the balance in the summer“Explains the tax administration on. its website.
First of all, which can be affected by this payment decrease vat rate, rise gas of the public treasury? The French who have a tax credit for a home jobof the Young children’s childcare costs (nanny etc.), Union contributions.
Those also who benefit from a tax reduction for expenses related to dependencefor donations to organizations of general interestthe gift to A political partyof the Rental investments “Duflot”. “Pinel”of the Rental investments “Scellier”of the rental investments in the furnished rental sector in certain structures and Overseas investments in housing. But that’s not all.
This reimbursement of the tax administration may also relate to income tax. The income declaration made in the spring may give rise to a refund. “For declaration 2025. if the calculated tax corresponds to the sums deducted from the source in 2024, you have no procedures to be carried out. However, if the amounts do not correspond, you will benefit from a refund of the overpart”indicates the decrease vat rate, rise gas administration.
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