5.5%/19.6% TVA

[dragonrouge]

Good morning have just been reading the Connextion news paper. It suggests that the lower rate for renovations of 5.5% no longer applies and it has increased back to 19.6%. On the basis that I never believe anything in a newspaper can anyone please confirm the point. I do hope not for around here our artisans are suffering and what work there is is in part driven by the lower rate. Also I have new double glazed window units to install.

[Anton Redman]

The French Government Taxes website makes no mention of any change. The link below says the 5.5% rate has been extended. None of the replacement window companies have been out at the Hypermarkets saying the French equivalent of get you you windows done now to save TVA. A couple of building sites quote 31/12/2010 as the last date but the low rate has always run on a year to year basis rather than being permenant.

http://www.batiactu.com/edito/la-tva-a-55--sera-maintenue-au-dela-du-31-12-2009-22645.php

 

[BJSLIV]

The 5.5% rate is only a temporary measure, like UK Income Tax!,  so it has to be renewed every couple of years. The next renewal is due at the end of 2010.

The last time it was renewed it was all very last minute and caused all manner of problems.

It seems to work very well, and it would seem to be unlikely that it would be scrapped. However with governments facing fiscal problems and  renewal needing a green light by Brussels, you should never say never!

[dragonrouge]

I am so grateful to everyone just hope that Connextion get it right!