Don't be afraid to ask for confirmation in writing.

[Val_2]

I've just sent off a registered letter to our local TVA office. Basically the project we have just started is subject to full TVA because we are creating a brand new dwelling out of an existing non-habitable outbuilding and all the info, the books and CAPEB papers refer all the relevent works down to the full rate of TVA as this is not what the original idea of a lower rate was intended for. However our clients went to see the TVA man and he was insistent that allthe works should be at the lower rate even with a full Permis de Construire,I even rang him next day to confirm this. However, having had several artisans here contact me this year because their accounts have been scrutinised over the rate of TVA they have been charging and some have ended up with judgements against them and have had to repay the difference themselves where deemed,I have decided to get a definitive answer in writing - verbal decisions just wouldn't stand up in a dispute even with three witnesses. To refund a total of 14,l% back to the fisc a few years down the line could finish a small artisan and I don't want to risk that happening just upon the say so of one individual. Has anyone else had this problem of getting a definitive decision out of the TVA people? as this is the first time we have had to query it although three years ago they did ask about a completed job whereby there was a Permis de Construire obtained for the property on other items and we had to proove that the works we did were not part of this permis,hence the reluctance to get into trouble. I would be glad for our clients to get the lower rate,means they have more to spend but not at the expense of us losing our livelihood.

[BJSLIV]

Val,as I'm sure you of all people know, the regulations always refer to "locaux à usage d'habitation achevés depuis plus de 2 ans ", where the two key elements are habitation and two years. Though there is much detail which refers to partiallly residential situations, if it ain't already more than 50% residential and over two years old then it must be full rate, end of debate.

[Bobc]

Val,

It may be different in other areas, but in 47 there have been a number of cases where artisans/companies have incorrectly applied the lower rate of TVA.

In all these cases the Impots have demanded the difference from the client rather than the artisan/company - and obtained it!

If you want more info then please PM me.

Kind regards,

Bob Clarke
http://perso.wanadoo.fr/grindoux

[Val_2]

Cheers Bob. After all these years we don't want to have to start chasing clients for differences a few years from now when they could be long gone. Dosn't hurt to protect yourself does it here knowing how different the authorities work in collecting their pound of flesh. Someone who got caught like this even had interest added on too and no way could they get their clients to pay up either.

[Deimos]

The few artisans who I have managed to get to attend and do work have sent through a form for me to sign (with the invoice) declaring that the house is my main habitation and that I am the proprietor and have been for more than two years (presumably to protect themselves). If fact one of the forms was a pre-printed form supplied by PointP (the sort of think I guess people get a “pad of them” and tear one off when required).

Ian

[Catalpa]

Where there's doubt as to which rate applies, would an option be to get all clients to confirm in writing at the same time they sign their 5.5% affidavit that, if it is deemed in the future that works should have been subject to the full rate, they, the client will pay the extra tax?

[Val_2]

Thats all well and good at the time but who is to say the clients will still be there in a couple of years time,then you are stuffed as they say. Unfortunately for a lot of brits,they are now are finding it very hard here and are selling up to return to the UK to earn a decent wage again.

[Val_2]

Well, I have had a letter today from the head honcho himself at the local impôts. Just as we suspected, denial of giving a definitive answer to our clients when they went to see him personally and now spouting some new law that insists only a decision can be given upon receiving all the relevent PdeConstruire/Demolition,a copy of the devis,plans with the projected finished project etc actually to their dept. He was actually shown these at the time but it just goes to show that verbal counts for nothing only trying to proove your innocence when if,for some reason in a couple of years the fisc decide to do a spot check on previous invoices and the rates charged. Even our children learned in citizenship classes at collège here never to take the verbal word in France.

[Ty Korrigan]

Val, The Anglo Saxons knew this from the days of Harold...

The word of a Frenchman simply cannot be trusted.

Prehaps this is the reason for so much paperwork here... they simply don't trust themselves!!!

[zeb]

The decision whether to keep the 5.5% TVA rate is being made today. Watch this space!