reducing TVA liability on house sale

[Brian -there must be a way]

Hi all,

I've tried a search for this info. but no good.  Also searched on Google but am even more confused.  Story in a nutshell - Bought land 2001.  Had house built by French construction company completed March 2003.  Bought and installed kitchen ourselves, various other improvements to the original shell including a swimming pool.  We want to sell now since we need to release capital for a business venture.  We understand that we have no CGT liability since this is our only home and we have made two consecutive tax returns and have our CdS however, we do have a TVA liability and I wonder if anyone can tell us how this is worked out.  We paid TVA on the original build of 19.6%.  Do we work it out on the difference between the original purchase price (where does the price of the land come into this since it was purchased earlier) and can we include the cost of the improvements, i.e. kitchen, swimming pool etc.  Something in the back of my mind tells me that you can't include decoration.  Has anyone been down this road with experience they'd like to share?

Brian

[Boiling a frog]

I am rather puzzled by this post If you have paid your TVA why do you think you are liable for TVA

I presume you paid TVA on the swimming pool,kitchen etc.when you had them installed and TVA on wallpaper paint etc

I think you are getting confused between TVA and capital gains tax where you are liable to pay CGT if it is your maison secondaire but are allowed to offset the costs of improvements providing you have receipts from French registered artizans  

[shanorm]

I think what Brian means is that you are liable for TVA on any profit you make when you sell your house.

[Brian -there must be a way]

We have now taken professional advice re this question and maybe we can share it with others.  A house under five years old which is sold for the first time has a TVA liability which the Notaire will collect from the seller .  This liability is based on the TVA element of the sale price minus Immobliers fees.  The TVA element of the  original purchase price (building price) is deducted from this and what's left is the sellers liability.  There is no sliding scale, the liability remains in full until a period of five years has elapsed.  Presumably the "powers that be" are aware of the profits that can be made on a sale such as this and have acted accordingly.  Giving with one hand and taking away with the other is something they are so good at (whichever country you live in).  Anyway, that's the story in Balamory today....................

Brian