Advanced Television

Netflix France to HQ in Luxembourg

April 3, 2014

By Chris Forrester

Netflix France will launch this autumn, but from its European headquarters in Luxembourg, thus side-stepping anticipated heavy regulations on what Netflix can supply to users.

Netflix will thus be exempt from obligations to invest into French audio-vi8deo content, and free of the obligations to charge 19.6 per cent TVA on its sales. Rivals to Netflix, such as FilmTV and Canal Plus’ Canalplay Infinity are required to invest 15 per cent of revenues in European content, and 12 per cent into French movies.

Netflix will have to levy TVA/VAT on its ‘exports’ to France but at 7 per cent, according to French business newspaper Les Echos, although there are European Community rules which suggest greater harmonisation of TVA/VAT rates across Europe.

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