taxes on the production. The taxes on the production cover essentially the taxe professionnelle, the taxe foncière, and the versement transport (the professional tax, tax land and the payment transport), which apply to the use of labour and the property or the use of land, buildings and other assets used for the sake of production. They are local taxes, so they are not collected by the central government (see Local taxes). Taxes on consumption traditionally consisted of indirect duties on the consumption and excise duties, applying only on the use of certain products (alcoholic beverages, manufactured, tobacco products and energy products). However, the establishment of the VAT and its generalization have considerably reduced the scope and thus the revenue of these indirect duties and excise duties even if one of them, the tax on petroleum products, is still considerable. The revenue from the excise duties amounted in 2007 to €2.7 bn, without the TIPP. Value-Added Tax (VAT) In order to establish a single market made up of the member states of the European Union, a number of directives on VAT has been enacted since 1967, with the obligation for states to adapt their domestic legislation. The rules relating to the scope, the tax base, the payment, the territoriality of goods and services as well as reporting requirements are partially harmonized, but states can apply transitional arrangements in respect of rates, exemptions and rights of deduction, whose rules are being harmonized. The VAT (French: taxe sur la valeur ajoutée, TVA) is a general consumption tax, which applies to goods and services located in France. It is a proportional tax on output collected by the companies and ultimately completely supported by the final buyer, i.e. the consumer, since it is included in the price of goods or services. Indeed, VAT is applied to the "added value", i.e. the added value to the product or service at each stage of production or marketing, so that at the end of the economic circuit, the overall tax burden corresponds to the tax calculated on the final price paid by the consumer. The current standard rate is at 20%. Two reduced rates exist: a 10% rate for books, hotel stays, local public transportation, and restaurant meals; and 5.5% for most groceries. A specific rate of 2.1% applies only to prescription drugs covered by Social Security. The net revenue of VAT in 2013 was €141.2 bn. Tax