ceumur Posted February 15, 2007 Share Posted February 15, 2007 I have built 4 houses for myself over the last 30 odd years in the north of scotland and now fancy doing it one last time in france.Two basic questions are is this as common in France as it is in Scotland and is there a reclaimable VAT entilement as in UK on new dealings?Many thanks. Link to comment Share on other sites More sharing options...
Teamedup Posted February 15, 2007 Share Posted February 15, 2007 It isn't uncommon to see new builds, but no VAT claim back. Link to comment Share on other sites More sharing options...
BJSLIV Posted February 15, 2007 Share Posted February 15, 2007 The system is the opposite of the way it works in the UK. In France you pay full VAT (19.6%) on a new house , but a lower rate (5.5%) on repairs. In the UK new houses are zero rated, but you pay full rate on repairs.In France they also deduct VAT from any profit made , even by the homeowner, on the resale of a new house within five years of completion. Link to comment Share on other sites More sharing options...
Collywobble Posted February 15, 2007 Share Posted February 15, 2007 [quote user="BJSLIV"]The system is the opposite of the way it works in the UK. In France you pay full VAT (19.6%) on a new house , but a lower rate (5.5%) on repairs. In the UK new houses are zero rated, but you pay full rate on repairs.In France they also deduct VAT from any profit made , even by the homeowner, on the resale of a new house within five years of completion.[/quote]To quote others on the forum, 'the system is setup to stop you getting rich'What is the deal, tax wise with selling a renovated property? One that was purchased to 'develop' ? i.e. shortest time to own prior to selling and are there big differences if you rent it out in the interim?Cheers Link to comment Share on other sites More sharing options...
ceumur Posted February 16, 2007 Author Share Posted February 16, 2007 In my case the question was aimed at building a house for the boss lady where she could work on it in better weather!!!With the vat status then I guess the best way is to buy her a wreck - well she has me already - and then call it repairs for the lower rate.Many thanks again for the replies.Mike Link to comment Share on other sites More sharing options...
BJSLIV Posted February 17, 2007 Share Posted February 17, 2007 and then call it repairs for the lower rateBut remember you only get the lower VAT rate for work done on existing properties by registered French artisans. If you buy the materials yourself you still pay full rate.So it won't qualify if you buy the boss a load of plasterboard and paint. Link to comment Share on other sites More sharing options...
richard Posted February 21, 2007 Share Posted February 21, 2007 Have seen your message today Wednesday The VAT situation is simple -in that you have to be registered VAT account in order to dea l with any matter of VAT and it is not normal for a private person You will have to be a business with all that invovles(paperwork)New build is not like Uk in as much it is at full rate at the moment it is only repairs and renovation that get a reduced rate Where are you planning to build/live - wiat to hear from you. regards- Richard Link to comment Share on other sites More sharing options...
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