TVA on renovating a ruin

[rouvel]

We have recently purchased a ruin in Najac, south west France and have a certificat d'urbanisme.  I have drawn up the plans and put them in for planning permission.  As I have been a property developer in the UK. I would intend to do a lot of the work myself, or sub-contract labour only.  In the UK I could reclaim VAT on a job like this.  Does anybody know what percentage I can claim back in France and the best way to go about it.

I would appreciate any help, thanks, Paul 

[Ron Avery]

Paul

Welcome to the best bit of France. and one of the most stunning villages.

As in the UK,  you can only claim back VAT (TVA)  if you are registered for VAT, so you cannot claim back TVA.  Nor can you offset the cost of materials ( or paid labour) against CGT if you sold the property and CGT was applicable.

If you buy your own materials you will pay 19.6% TVA, if you use a builder he will charge you 5.5%.  If you not a registered employer, you cannot legally sub-contract labour either. 

There is a project manager/architect in Najac,  he will do all this for you but at a price and profit.   Not that you would do it of course, but you may be able to find labour willing to work cash in hand, but not so many do this, now that the Gendarmes have taken a keen interest in the activities of the once thriving Anglo/irish building community, if you are out of the way you may get away with it, if the neighbours and local tradesmen don't mention it to les flics, if you were caught, as it is illegal to employ people on the black, you would be prosecuted as well as your workers. plus the fact if you are paying people to work for you, you would also be liable for any accidents and resultant compensation.

There are good builders in the arera,  but the good ones have full order books for 2006 and into 2007,  so bonne courage.