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TVA - Beginners Query


Gabe
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Forgive me for this one, I am sure that everybody else knows the answer to these, but in the post euphoric glow of the good news, can somebody educate me as to how this works.

Q1:I assume that renovation work undertaken by an artisan will incur 5.5 % TVA, does this include materials/equipment or just labour ?

IQ2:  know that if I do the work myself  I cannot claim for my own labour, but can I get the TVA reduced for equipment/materials that I buy ? If so how do you go about it ? Is it set off against your tax obligation ?

Q3: With any of this, does it matter that I am not yet pemanently based in France and as yet do not make a tax return ?

Apologies if this has already been done to death !

Gabe

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Q1:I assume that renovation work undertaken by an artisan will incur 5.5 % TVA, does this include materials/equipment or just labour ?

YES, EVERYTHING IS AT 5..5%

Q2: I know that if I do the work myself  I cannot claim for my own labour, but can I get the TVA reduced for equipment/materials that I buy ?

NO

Q3: With any of this, does it matter that I am not yet pemanently based in France and as yet do not make a tax return

NO, Income tax etc has no bearing on this.  The property has to be over two years old for a registered artisan to charge the reduced rate of TVA.

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"Q1:I assume that renovation work undertaken by an artisan will incur

5.5 % TVA, does this include materials/equipment or just labour ?

YES, EVERYTHING IS AT 5..5%"

It would be a good idea to check with your local Impots regarding

the work that you plan to have carried out - in 47 all renovation work

is not at 5,5%.

Generally here the Impots will allow for the renovation of existing

properties and for installing replacement kitchens, bathrooms, etc.

Conversion of previously unoccupied areas such as greniers are a grey

area. Installing new kitchens and bathrooms where none existed are at

19,6%.

Exterior work such as landscaping, terracing, etc would be at 19,6%.

It is worth taking the time to check with the Impots yourself - even

if your artisan charges you the lower rate, you will be liable to pay

the difference in the event of a check.

Regards,

Bob Clarke

http://perso.wanadoo.fr/grindoux

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What about installation by a registered artisan of a fosse septique where previously none existed? Would that attract TVA at 5.5% ?

 

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Not so LF. According to our builder, whose O/H works at the Mairie, a new FS where one has never existed before  is new works and NOT a renovation and the work is taxed at 19.6%.  You only get 5.5% if you have an old fosse septique or are upgrading. to the new standard.
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Bob is correct. Fosse septiques are covered by the lower rate of TVA @ 5.5% if the property they serve is at least two years old. Below is an extract from the TVA rules. Anyone who has been charged 19.6% should query this with their installer.  Believe it or not, some local village Maries are not always correct or fully up to date on their own laws and will give you an answer that is not entirely correct. In all the years I have been working in France, I have had to provide corrections on items such as the above by contacting the relevant authority direct - in this case the TVA centre des impots. Some Mairies will still even tell you you need a carte de sejour, to live in France.

b) Travaux d’assainissement non collectif
100. Les travaux d’installation, de mise aux normes et d’entretien (vidange, curage) des systèmes d’assainissement individuel relèvent du taux réduit lorsqu’ils sont réalisés pour les besoins de locaux d’habitation achevés depuis plus de deux ans (cf. annexe II-4).
101. Les travaux de vidange d’une fosse septique peuvent par ailleurs être considérés comme des travaux d’urgence et être soumis au taux réduit lorsque les locaux d’habitation sont achevés depuis moins de deux ans (cf. n° 193).

Paul

 

 

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We are currently renovating an old outbuilding that was never used for habitation (no chimney,drainage etc) and after many meetings and insistance on getting the facts and the correct rate of TVA applicable on paper from the TVA head man you can use a guide that as long as the building is over 2 years old and will be used for habitation only purposes all the ground floor work comes under 5,5% BUT if no upstairs previously existed and the roof has to be renewed and/or highered all the work from and including the new first floor upwards will be at 19,6%. Many builders have been caught over the past couple of years charging the lower rate and when their books have been examined in a contrôle by the impôts they have been made to pay the difference, not their clients and I have had two ring me about this and how unfair it was. Regarding fosse septiques, I believe if you have an electrical pumping system installed, that actually comes under 19,6%.
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It can be confusing and Val is correct to point out that one should always check with the TVA office.

The rules definetely state that any raising of the existing roof level makes the job invoicable at 19.6% which I think is why your example above made the job 19.6%, but if the roof remains the same and is replaced like for like, then the rate is 5.5%.

The TVA rules can be found here;   http://www.batitel.com/revues/tva.php 

or here  http://www.devistravaux.com/fiche-pratique_1.html

 

Paul

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[quote user="Val_2"]And in this particular case because no first floor had ever been constructed, it was made clear that the full rate should be applied. If you are not sure or have the slightest doubt, get it in writing to protect yourself.[/quote]

Val:  should I raise this with our builder? He is charging us on our whole renovation 5.5 % TVA. The house  which is being renovated and extended is more than 2 years old and has been lived in. But it was covered by a flat roof and has now a pitched roof, which is much higher than the former flat roof. In this roofspace will be 1 mezzanine and in the new extenstion one bedroom. So would the new bedroom and the mezzanine plus the new roof attract the higher TVA?  Thank you so much for your answer.

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Monika. I would query this because if and when the fisc do a contrôle on your artisan's activities, they may pick up on this and you could be asked to find the difference via the artisan. Anywhere that has never been inhabited as living space before would probably come under the full rate as it is increasing the potential for the fisc to charge you more taxe d'hab. Try and get it in writing if you can to protect yourself, I've made so many copies of our decisions over the years just in case.....
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