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5.5% TVA


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  • 3 weeks later...

The discussions have ended. Earlier today it looked as though the 5.5% concession for the  building work would continue.

However talks have now broken down with Cyprus, Poland and the Czech Republic  opposed to continuation, and if they don't cave in before Sunday the rate may have to go back up to 19.6%.

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Why are they objecting?

Well when they joined the EU they agreed to abolish a number of VAT concessions of their own. They are now saying if France and some other countries want too continue with their concessionary rates, then we want to be allowed to continue our own exceptions.

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But it's still about as clear as mud because according to Wanadoo, there was a meeting of building workers and Dominique de Villepin this morning and he has vowed to keep it at 5.5% whilst they try and battle it out with Poland!  Also, Poland have suggested reviewing at the end of 2007 instead of 2010 in return on some concession for VAT reduction on new builds in Poland (I think!)  So when on earth are we going to get clarification?  Still, at least the work our carpenter did last weekend on new French windows has now been billed at 5.5%.  He's started working on our ceiling joists today - I just hope he can get that work done before a final, final decision is made!!
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It's likely to stay at 5.5% for a while though, since national legislation will have to be brought in/amended to change it.   The Commission said last week that they understood this situation and would not fine countries who could not make the change immediately.
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Seconded.

I suspect though that 2010 really will be the end of it - unless of course the beerycrats get their way and "harmonise" VAT throughout Yoorp and everyone benefits from a similarly low rate. Far more likely to be at standard rates methinks. But that is too far away for me to care just now.

John

not

 

 

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