Canal+ warns VAT increase could cost €200m a year
October 2, 2026 11.49 Europe/London By Julian Clover


Canal+ has stepped up its opposition to proposed changes to the VAT regime for television subscriptions in France, warning that doubling the rate could cost the group as much as €200 million annually.

The French government is proposing to increase VAT on television subscriptions from 10% to 20% in mainland France, with Canal+ saying the rate would effectively quadruple in the French Overseas Territories.

Canal+ described the proposal as “inconsistent and ill-advised”, pointing out that the French tax authorities confirmed the application of the 10% rate to its subscriptions less than a year ago.

The broadcaster says it would be unable to absorb the additional cost and warned that the consequences could include higher subscription prices, reductions in its French workforce and lower financial contributions to film, sport and the wider creative industries.

“The measure would have a massive negative impact on the Group’s revenue and operating margin – potentially reaching €200 million annually – whereas the gain for the State would represent less than a quarter of that amount,” Canal+ said.

The group also highlighted concerns already expressed by the French film and rugby sectors, both of which receive significant funding through Canal+ rights and investment.

Canal+ said the proposed change amounted to “a direct attack” on its French operations and could accelerate a strategic shift towards international markets.

Now present in almost 70 countries, the company said it regretted that its activities in its home market were being targeted and that it would “draw the necessary conclusions and accelerate its international expansion strategy”.

Canal+ said it would continue making its case to the French authorities on behalf of subscribers, employees and commercial partners, as well as what it described as the French and European “cultural exception”.