Qualifying for the 7% reduced rate IVA???

[PaulT]

Had a devis from a tradesperson to replace the fosse and he has calculated the IVA at 7%.

Just had another tradesperson to quote and he is querying whether the 7% is correct claiming that the persons whose property it is has to be 'registered' in a particular way. He is suggesting that I purchase the materials from his supplier with his trade discount directly at presumably 19.6% and then I just pay him for the labour.

Would welcome your comments on the % issue and also the latters suggested method of me buying the materials.

[Quillan]

He may be referring to the fact that you must be resident in France to benefit these days. It is becoming more the norm to prove this by being tax resident i.e. they want to see your 'tax return' or more to the point 'bill'. Don't know why but what he is suggesting you do is ringing alarm bells in my head for some reason. Your obviously waiting for a third quote so see what that one says, if not get a third one to quote.

[Val_2]

I know we ceased trading 18months ago but non-residents were always allowed the TVA at the lower rate on building/renovation works and especially so on fosse installations, crikey we did enough and over 18years never had any fiscal queries. Only a TVA registered artisan/buisiness can charge the lower rate, an attestation has to be given and signed by the client at the end anyway for the fisc, and anyone else doing this work under another regime would not be involved in TVA anyway and could not quote it on any devis. If you are unsure, contact the local TVA office and they will confirm but as far as I know,it makes no difference as to whether you fiscally reside in France or not!

[Val_2]

To the OP, in the name of all that matters, make sure the artisan you do use is properly covered with Décenelle and Civile insurance and ask for a copy when you have signed and returned a copy of the official devis - it is your right to demand this. There are many cowboys out there and you need to make sure your man knows the system regarding the official paperwork and the french normes of installation.

[nectarine]

We had a holiday home for 12 years and all the tradesmen gave us the reduced rate. We didn't have to register anything. I understood that the reduced rate was for older properties ... over 50 years old, I think one tradesman told me (can't be sure).

[Cendrillon]

Nectarine, you are correct. For the 7% TVA reduced rate it is the age of the property that counts.

[suein56]

[quote user="Cendrillon"]Nectarine, you are correct. For the 7% TVA reduced rate it is the age of the property that counts.

[/quote]

According to our plumber, who installed a new chauffe-eau for us last year at 7% TVA, the residential property concerned must be over 2 years old or not have had more than 5 out of 6 categories of major works done within the last 2 years. Ours house was 9 years old last year.

The writing is in very small print on the form you and the professional sign.

Sue

[PaulT]

Many thanks for all the replies.

Val the two quotes we have had so far are both from French tradespeople - one recommended by the inspector and the other by the local builders merchant but take on board about insurances. Is the French system the same as the UK VAT system whereby there is a figure below which the tradesperson cannot be VAT registered.

The majority of the property was built in 1965 and a part in the 1800s and since our ownership, 6.5 years, we have had no tradespeople work on the house.

[Patf]

I agree about it depending on the age of the house.

When we had heating etc put in our plumber gave us a form to sign to confirm this, and get the lower TVA rate.

[Rabbie]

[quote user="PaulT"]

Many thanks for all the replies.

Val the two quotes we have had so far are both from French tradespeople - one recommended by the inspector and the other by the local builders merchant but take on board about insurances. Is the French system the same as the UK VAT system whereby there is a figure below which the tradesperson cannot be VAT registered.

The majority of the property was built in 1965 and a part in the 1800s and since our ownership, 6.5 years, we have had no tradespeople work on the house.

[/quote]Don't know about the French system but there is no lower limit in the UK for a tradesman to be VAT registered. There is just a figure which, when his turnover exceeds this, he must register for VAT

[Val_2]

Here you can only charge TVA if you are registered to do so and most building firms will be as their turnover far exceeds that of the lower registered Auto Entrepreneur or Micro Bic systems which have a yearly limit before they must change their régime and go fully TVA registered. The AE scheme was designed for people to start a small business not a fully fledged building concern and a lot of people have taken advantage of this but insurance is their biggest problem. Trades bodies like CAPEB have always been against people using the AE system for building trades and related such as fosse installations because they undermine the fully registered artisans and only charge for labour whilst their clients buy the materials etc. All TVA reg artisans MUST BY LAW show their registration number on their official paperwork to clients and make returns to the fisc with a main return at the 31st December.The lower rate applies to all domestic properties that have been built for more than two years.Commercial properties/other businesses are charged the full rate.

[andyh4]

Form 1301 - SD which is the attestation simplifiee - outlines the conditions for obtaining the lower TVA rate.

 

I am sure an internet search will pull up a copy - and no mention of the age of the property.