French Finance Act2005

[Porth]

I wonder please if someone can help?

The existing log burner has to come out (will not bore you with detail) and a new one installed.  Two artisans have quoted fairly similar prices and with tax at 5.5%.  So far so good.

However in Villedieu les Poeles there is a cheminee franchise holder with the franchise being Renee Briasch but obviously run by a SARL with a differing name.  Their showroom is very very good and their people and the whole thing smells of professionalism and again cost!

We are seeing them tomorrow afternoon and need if at all possible help ahead of the meeting.  Our French gets us by but this is beyond us.  They tell us that under the Act that new installations (but not labour costs) qualify and after the event so you have to claim with the Depot d'Impots for 40% tax credit against the cost of the product and this would be in 2006.  Indeed there is an advert in Ma Maison et Jardin this month which clearly shows 40% credit for solar heating.

Does this mean please that say something costs 2000 euros then you claim and obtain 800 euros credit and this is then applied against your tax return or does it mean that they give you a cheque for 800 euros.

Again would the labour costs still attract tax at 19.6% or 5.5%  It cannot be that the product itself attracts tax of 5.5% then you also obtain the 800 euros credit?

I am sorry that this topic is so long but hopefully it will prove of interest to a considerable number on this forum.

 

kind regards

 

 

[Gyn_Paul]

I had not heard of a tax credit for wood burners, only for solar heating installations, if it's true then it is indeed good news (or have I - yet again - been missing something all these years?).

And yes, as far as I know, it's a credit against tax payable, rather than an actual rebate.

If it is any help to you, a small house renovated a few years ago had VAT @ 19.5% on the parts where the builders renovated existing structures, but where they knocked down a cow shed and built a new sitting room it was charged (materials AND labour, if I'm not mistaken) @ 5.5%TVA.

paul

 

[zeb]

I've just picked latest Le Guide de Chauffage up in Bricomarche and it clearly states that the woodburner is subject to 5% TVA if it's bought and installed by a professional. Not sure about TVA on labour.

To claim the 40% tax credit you must buy (either yourself or professional who will install it) a woodburner (and necessary equipment) with the FlammeVert accreditation from the Agence de l'Environment et de la Maitrise (l'ADEME) but looking fthrough the catalogue most of the woodburners have this FlammeVert sign. It says in the catalogue "Vous etes ainsi rembourse d'une partie de votre achete". So, if you are liable for tax you get 40% taken off. If you are tax registered but don't get enough income you will have the 40% sent you by cheque. (We recently received a cheque for something we bought last year as we didn't earn enough with all our allowances to pay tax). Obviously you have to be a permanent resident in France and tax registered.

I wonder if this applies to chimney liners as we have to get a new one (these are on promo at Bricomarche at the moment). I presume that it doesn't unless bought with the poele.

Hope this helps!

[Ron Avery]

[quote]I had not heard of a tax credit for wood burners, only for solar heating installations, if it's true then it is indeed good news (or have I - yet again - been missing something all these years?). And...[/quote]

Paul

I think you have it the wrong way round, renovation works materials and labour, is charged at 5.5% and "new" works like barn conversions, fosse installations and change of use are 19.6%  I cannot see why a new wood burner would  attract the lower rate of TVA. but if it says so in Bricomarche who are we to arque

Didn't I read somewhere that the lower rate of TVA is being withdrawn in the New Year or was it a malicious rumour put about by builders to get work

[Porth]

[quote]I've just picked latest Le Guide de Chauffage up in Bricomarche and it clearly states that the woodburner is subject to 5% TVA if it's bought and installed by a professional. Not sure about TVA on lab...[/quote]

Thanks for all the prompt responses.  Having done some more leg work I am again informed that wood burners do qualify for 40% rebate this being applied against your tax.  Then if no tax one gets a rebate somewhat like the UK.  As to the UK situation do not get me started on that one its a continuing saga with various non-resident departments.  My wife has a no tax code I have a tax code why I ask ah well you have a self assessment tax form and you were a lawyer and thus there must be continuing income from that source. There is not!

However that is what I have been informed today by the local tax people whether this materialises is another issue but it looks as though it has some value?

 

regards and thanks again

 

 

[LesLauriers]

Looking at the impots pages it appears to be a tax credit of 40% on the cost of materials only, not labour, and not if you do it yourself.

[Gyn_Paul]

[quote]Paul I think you have it the wrong way round, renovation works materials and labour, is charged at 5.5% and "new" works like barn conversions, fosse installations and change of use are 19.6% I cann...[/quote]

Daaaaagggg..

Ron - I'm sure you're right,  I'm miles away from the files so was doing it from memory (always a mistake). So the score is one-all, then!

PS did you get an PM from me ?

paul

[Porth]

[quote]Looking at the impots pages it appears to be a tax credit of 40% on the cost of materials only, not labour, and not if you do it yourself.[/quote]

Yes its 40% on materials only and with a registered artisan fitting the goods.

 

Labour costs do not apply.

 

Even so 40% of tax allowances on 2200 euros is welcomed.

rdgs

[Ron Avery]

[quote]Daaaaagggg.. Ron - I'm sure you're right, I'm miles away from the files so was doing it from memory (always a mistake). So the score is one-all, then! PS did you get an PM from me ? paul[/quote]

Paul  RE PM. I have not had an E mail to tell me abouit a PM and I don't know as I have lost the bloody control panel again!!!!!!!!!

[Clair]

VAt at 5.5% is applied for goods and labour if fitted by a registered company/artisan.This will possibly change/be cancelled at the end of 2005.

Heating specifically (for work done in 2004):

Tax credit: this is applied against any heating installation (wood, solar and other I cannot translate off-hand) if fitted in main residence built less than 2 years ago.

OR Tax credit + VAT @5.5%: as above but for main residence over 2 years old in build.

OR VAT @ 5.5%: property older than 2 years which is not main residence.

For the tax credit you have to enclose a copy of the invoice with your declaration d'impots. If you do not earn enough to pay FR income tax, you will be sent a cheque. If you do pay FR income tax, this credit d'impot will be deducted from your tax bill.

The percentage of the credit d'impot varies according to what is fitted: I had 15% back on purchase of thermostatic valves and heating thermostat last year (as well as 5.5% vat on purchase+fit)

I am expecting 15% back on the purchase of a wood burner installed in 2004 (as well as paying only 5.5% on purchase and fit).

However, these rules changed in Jan 2005 and I some credits are 15% (purchase and fit of low-heat boilers (?), 25% (condensing boilers, insulation, room & radiator thermostats) and 40% (heat pumps, solar or renewable energy, that means wood) all depending on the equipment meeting certain characteristics.

All these apply if it's done in your residence principale AND if it was built (completed) more than 2 years ago

There is also a ceiling to the tax credit depending on your family type (1 pers, 2, with or without children...)

Clair

PS: I get all this from a magazine called "Le Particulier" which is the best subscription I have ever paid for, as it gave me all manners of financial tips and helped a friend get 25% back on €35K when his converted barn was re-roofed and insulated...

[Ron Avery]

Clair said

Heating specifically (for work done in 2004):
Tax credit: this is applied against any heating installation (wood, solar and other I cannot translate off-hand) if fitted in main residence built less than 2 years ago.
OR Tax credit + VAT @5.5%: as above but for main residence over 2 years old in build.
OR VAT @ 5.5%: property older than 2 years which is not main residence.

We had a replacement super duper freezer size modern computer controlled boiler installed in 2004, TVA was 5.5%.  BUT  but is there a tax credit that should have been claimed?  If so how do you go about getting it, bearing in mind that yesterday I paid a cheque to the Tresor  Public for impots 2004

[LesLauriers]

Ron,

Go to www.impots.gouv.fr, click into Particulers, click into Vos Impots, click into Documents d'information 2041 etc.

You are looking for form 2041GR to obtain the detail, renewable fuel source or condensing gas boilers are certainly covered.

If you think you have a claim you just write to your local impots office stating why and give them a copy of the supporting factures. If they agree they will either send you a cheque or give you a credit for next year.

[Teamedup]

Just call in at your Hotel des Impots with your declaration etc and the bills and say that someone told you you should have claimed this too and they'll sort it out no problem. If you are eligible they'll give you the money back, if not they will tell you.

[Clair]

"We had a replacement super duper freezer size modern

computer controlled boiler installed in 2004, TVA was 5.5%. BUT but is there a tax credit that should have been claimed? [Wow] If so how do you go about getting it, bearing in mind that yesterday I paid a cheque to the Tresor Public for impots 2004"

Your first port of call should be your local/regional centre d'impots. Their tel number is at the top of the right hand page of the avis d'impots you received a few weeks ago.

I have found them quite helpful in my area after they totally forgot to take my wood burner purchase into account for their calculations. I have just receive a chq for 314€ (15% of wood burner purchase)

My understanding is that you should be able to claim either this year or next year, but it will be at the rate set for the year of purchase (if the rate has changed).

That is just my feeling, and you do need to check with them.

Good luck with it!

Clair