Renovation work TVA charge 5.5 or 19.6

[Fourbarewalls]

In the process of getting a number of quotes from English builders in the Limoges area, in the past when I have had any work completed by French builders I have always been charged TVA5.5%. One of the quotes I have received recently has been charged at TVA19.6. Does anyone have any experience of this, builder has come back this morning after checking with accountant and is still sure it will be TVA 19.6.

Any help would be much appreciated

Lee

[Anton Redman]

Normal split is new build 19.6 - repairs 5.5. Which is why you see French houses in Red Brique Creuse waiting for 2 years to elapse so rendering them will be at 5.5 TVA rather than 19.6. For both a installed new wood burning fire and some central heating repairs we had to sign declarations that the house was over two years old.

[Panda]

Hello

I'm no expert but as I see you are talking about a barn on another thread isn't that the issue.  If the property has never been a habitation it is now automatically 19.6% isn't it??  One of the tradesmen will commnet I'm sure.

Panda

[Fourbarewalls]

The barn was once a home so is in effect a habitable space already so any work on the property should be charged at TVA5.55 surely. Its not a new build its a renovation.

Friends of ours in the Haute Vienne have paid TVA5.5 on all work undertaken on the conversion of there barn that is attached to there house, the barn is being converted into guest bedrooms and has never before been habitation.

Lee

[andyh4]

In its simplicity (and therefore in the detail there will be exceptions)

 

5.5% for repairs and renovations carried out by registered trades people provided that the property has been a habitation for over 2 years (the previous 2 years).  (Some Departements still insist - wrongly - that YOU have to have been living there for the 2 years).

Exceptions at 19.6%-

change of use - so barn conversions not covered.  Bear in mind that old habitations may have become declassified as such if they have been left unused for some time and these also effectively become change of use.

New works and extensions (but included at 5.5% can be extensions into attached existing non-habitable outbuildings)

Extensive rebuilding where the costs of renovation are more than the value of the property  (not sure of the exact limit when 5.5% become 19.6% here). 

[Fourbarewalls]

Im still none the wiser or is it just ignorance due to the difference in TVA costs, obviously I'd like to go with the cheaper one. The problem I have at present is that the builder I feel comfortable with wants to charge TVA19.6% this will be his first job through his own company previously he has been contracted to work with another builder. The other builder that has been working in the area for 4 years and has an established firm will charge TVA 5.5 his charges are more expensive before the TVA charge.

What seems odd is that everyone else has been charged TVA5.5 for similar works, abd even the French builder has been charging me TVA 5.5%

Will have to keep asking until I feel comfortable that we have been quoted correctly, whats the outcome if we are charged the wrong level of TVA who pays the difference if its noticed by the equivilient french tax man.

Lee

[Iceni]

[quote user="Fourbarewalls"]

........... whats the outcome if we are charged the wrong level of TVA who pays the difference if its noticed by the equivilient french tax man.

Lee[/quote]

That's easy Lee, you do [:(]

John

and

[Fourbarewalls]

Hi Di its Lee from Villeberthe, I got intouch with John last month before we came over but we got so busy seeing everyone and the trip was so last minute I forgot to get back intouch, I hope alls well, out of interest with the renovation work on your place what was the TVA charge, saying that yours was being used as a habitation before you started.

Nice to hear from you

Lee