French Polynesia has reduced VAT to 1% in the remote archipelagos outside the Society Islands, effective from 1 July 2026. The measure is intended to encourage investment, stimulate economic activity and protect household purchasing power, replacing previous rates of 13% or 16% for eligible transactions. Its application depends on where a sale takes place, the buyer's status and, for some goods sent from Tahiti, how they are shipped. Authorities will monitor prices through the end of the year to assess whether the reduction reaches consumers.