Which rate of TVA applies?

[Coco]

Due to our French macon breaking his leg we have had to find someone else at short notice.  We have devis from two British builders.  One has quoted 5.5% TVA and the other 19.6% for the same job.  The job is to lay a concrete floor in the barn which is integral to our house, knock a doorway through from the barn to the kitchen and lower the doorway into the barn (which is currently a metre above ground level) to ground level and then consquently lowering the lintel and filling the stonework in above the new level of lintel.

When we applied for the permis it was for "agrandissement" of the existing house but is that covered under renovation at 5.5% or new build at 19.6%?

Can anyone tell me who is quoting the right rate?

[Agenais]

I as under the impression that is the house if of "an age" then the 5.5% applies, that has always been the case with our ancient dwellings.  Not certain what the properties age has to be though, but I am sure someone will enlighten us.

[Coco]

I know you have to sign an attestation to say that you have owned the house for more than two years, and whatever "age" the house has to be, then I presume mine has surpassed it (1734) as all previous work carried out by French artisans has been at 5.5% but that was installing central heating, a staircase and bathrooms, so more clear-cut as renovation within the existing house.

[Agenais]

I would still say 5.5% applies as the work is being carried out within an original old building, even if it is changing its useage to extra living accommodation. 

[Ron Avery]

If the work is integral to the house you will be quoted 5.5%,  however just because it is an "old building" does not make all work on it 5.5%  A barn conversion, change of use, to a house should be charged at 19.6%.  A quirk is a new fosse to replace a hole in the ground is 19.6% , new works, if it was a renewal of existing or an upgrade then 5.5% is correct.

As for your English builders, I think you already know the answer to the demand for money up front, make a well known phrase of   "it, the, don't, sun, stick, where and shine"   You may just have to be patient and wait for a reputable builder, better that than chasing 40% across the channel.

[andyh4]

Just to confirm Ron's comments

 

Our renovation includes extending the house into an attached stable and converting the barn to a gite and workshop.  Stable wrok is charged at 5,5% and the barn at 19,6%.

 

If you have an English builder insisting on 19,6%, then one inference is that he cannot claim the difference between the two VAT rates back from the authorities.  And the inference there is that he is not registered or will not be declaring this job to the authorities - beware.

 

 

[GRT17]

[quote]I know you have to sign an attestation to say that you have owned the house for more than two years, and whatever "age" the house has to be, then I presume mine has surpassed it (1734) as all previous...[/quote]

Coco

Sorry I can't help with the correct rate for the barn conversion.

I know you have had your house for a while now but for the benefit of others reading this I am fairly certain that it is only the house that has to be over two years old to qualify for the 5,5% TVA (if that is applicable to the job required) so if someone had only just purchased an old house they would still qualify.

 

Gill

[Val_2]

I can tell you officially that the rate of 5,5% will apply to this work on the ground floor. However, if there is to be a new upstairs which did not exist before then that particular work will be rated at 19,6%. Changing the roof other than just replacing timbers and tiles is also subject to 19,6%. It sounds like one of the builders is not TVA registered to me or is starting to charge the full rate in case the decision to continue 5,5% is refused. I recently had a long and detailed discussion with our local head of the TVA dept here and now have it in print as last as to what part of our client's renovations are to be TVA rated at. This is an independent building facing the main house which has never been used for habitation and had no upstairs, hence the reply above. Properties to gain from the lower rate of 5,5% must be over two years old and the client must sign an attestation given by the artisan to this fact along with a couple of other bits of info. If your artisan cannot produce this attestation then he is not trading correctly if he is invoicing at the lower rate as these attestation are inspected when desired by the fisc. ALL works invoiced after 31.12.05 must be charged at the full rate IF THE LOWER RATE IS NOT CONTINUED even if the devis was signed and accepted way back.

[Punch]

The actual Official TVA rules are here.

http://www.batitel.com/revues/tva.php

 

Paul