Lower tva for renovations/repairs

[Hereford]

There is a rumour going round locally (mostly via a British fully registered builder) that the lower 5.5% tva rate on repairs etc on older houses has been scrapped.

Anyone any knowledge of this - it seems to crop up every year or so.

H

[allanb]

This site  http://www.travaux.com/dossier/tva.html  says that the 5,5% rate applies until 31 December 2010.  I don't think it's clear whether it actually ends on that date.

[Polly]

Yes that rumour is doing the rounds but it's not based on fact.

'tis true however that unless the provision is extended it ends on 31st December 2010. No doubt we will have to wait until at least la rentrée and probably après the Toussaints holiday to hear more.

[Hereford]

Thanks a lot - we suspected that if it was to end it would be on 31 December.  Will make sure this is passed around.  It will probably be extended as the govt. would find it hard to end this concession.

H.

[Catalpa]

The rumour does the rounds every year and every year the date gets extended. Iirc, it's EU bods that would like it scrapped to bring France in line with other countries but I think France is quite happy to continue with 5.5% / 19.6%.  And probably quite happy to continue bucking EU requirements. [:)]

Or, it may be that the builder in question is trying to get clients to commit to projects this year by telling them - quite correctly - that the lower rate allowance may be scrapped. It's just that recent history suggests it won't. And it doesn't sound as though he's doing that anyway.

Edited to say: the other reason the builder might be saying 5.5% is not longer available is his tax regime (if he is not VAT-registered) may not allow him to offer the 5.5%. This is not illegal in any way (though dishonest if he knows he's fibbing about the 5.5%) and he may be correctly registered and insured but not yet have chosen to be VAT-registered... because being VAT-registered brings forth a whole different level of bureaucracy.

[Hereford]

Thanks Catalpa.  We can at least reassure friends that the lower rate, as such, has not been abolished.