TVA TO REMAIN AT 5.5% UNTILL DECEMBER 2010

[Punch]

According to the front page headline in the Ouest France newspaper this morning, is it as good as a done deal that TVA will now remain at 5.5% for renovation works in France.

The Austrian EU presidency is to propose to the EU finance ministers on Tuesday that it has now recommended the rate to continue until the end of 2010.

The article goes onto say cautiously that it does need official approval to become law, but it is considered  "Acquise "

This is welcome news not only for any Artisans like ourselves, but also for all who have purchased in France with future renovation projects in mind.

However this has caused furore in the restaurant sector whereby it looks like the 5.5% rate they wanted looks unlikely!!

Paul Punchard

 

[Will]

That's certainly good news for many, particularly for the artisans. Especially after I read a post on another forum yesterday saying that the 5.5% rate had definietly been thrown out [:D].

Thanks Paul, I'd certainly rather believe you.

[Russethouse]

I'm really pleased for all of you, but is this just for France (as opposed to other EU countries) and if so , why?

 

[Val_2]

I didn't think the decision was to be made until Jan 24th. We have been asked to mobilise in Paris, bit out of the question though from here as only coaches going are from 100miles away.

[zeb]

Yes, it was on the news this morning and in todays Charente Libre.

[Punch]

[quote user="Val_2"]I didn't think the decision was to be made until Jan 24th. We have been asked to mobilise in Paris, bit out of the question though from here as only coaches going are from 100miles away.[/quote]

Val as I mentioned in  my post above, the official decision, (as you quite rightly mention) is to be made on Tuesday by the ECOFIN members, but unofficially the deal is as good as done, according to just about everyone (unless there is a massive rebellion ). The crux seems to be that the Austrian  presidency has approved the deal, probably at the expense of the restauranters!

You have missed the trip to Paris. I believe The CAPEB immobilisation "TVA 5,5%" was in Paris last Wednesday. I didn't go either but was there in spirit with my Capeb T shirt on at work!

Gay, I think that when the low rate of TVA was agreed in France in 1999, it was an experiment and other EU member states were allowed to propose their own ideas for lower tax rates in certain domains. Steeped with very high unemployment, and taxes, France chose to have this special rate to help with uemployment, reduce the travaille au noir, and help the construction industry. It does seem to have helped the construction industry enormously . Wether it has reduced the black work or not I have no idea, but I do know that the majority of my clients do not mind paying 5.5% TVA, but many would have not had the work done if it reverted back to 19,6%. I have no idea what concessions other EU members chose or have in place.

Paul

 

[Punch]

sorry double posted by mistake!

[Val_2]

Yes, we have been wearing the teeshirts too. I had forgotten about the Paris mobilisation and thought for some reason it was going to be this coming week, oh well,too far to go anyway but we were there in spirit as it affects all of us in the building game. I wasn't really paying attention but I think the 5,5% has pleased my employers who deal in chocolate.