5.5% TVA

[Jec]

Can anyone please tell me if there has been any changes made recently to the charging of TVA at the reduced level of 5.5%. 

Julie

[Iceni]

Not as far as I am aware and I also read on a site (but have lost link) that the EEC think that this is a good thing and may look at a similar system for the whole of the EEC to reduce people who work on the black.

[Val_2]

It is due to finish at 31.12.05 unless there is a reprive by Brussels again. We shall continue to lobby for it to continue via CAPEB.

[Catalpa]

Val - if you wouldn't mind giving your opinion on a new fosse TVA question:

we have an ancient house (total renovation project) with accompanying ancient 1cu metre fosse - not even slightly toutes eaux. We've just had a 5cu metre fosses toutes everything with sand filter bed installed. Originally the company thought it qualified for the 5.5% TVA rate but now say it is 19.6% TVA because there was a fosse in existence, it's conformity to the new regs being irrelevant.

In your experience would you agree with that interpretation?

[Val_2]

As far as our information is concerned the only fosse installations that have to come under the 19,6% rate are those with automated pumping stations usually for small areas or difficult terrain. A bog standard two tank/filter system should be 5,5% and this is what is written in our "bible". This is renovation/modernisation work not a luxury thing. What I will say is that just lately the TVA authorities have been checking a lot of artisans out and a lot who have been doing up complete old houses for re-sell on the lower rate have copped it big time because the lower rate was to enable householders to be able to afford important remedial works that they would have otherwise been unable to finance easily. Do you have a Permis de Construire for works on your property,because if so,this also has a bearing onthe rate charged.

[Catalpa]

hi Val -

thanks for the info. I can go back and make the case for 5.5%.

Yes, we have a permis de construire for the whole renovation - we even bothered to get a variance when we decided to install solar panels on the roof. The renovation is for us, not - assuming no future tragedies or disasters - for re-sale. The company who did the installation is large, local and reputable having done work for the commune itself.

Thanks again.

[Val_2]

I'm afraid that Permis de Construire may be against you on this case as it isn't just a straightforward small renovation or modernisation. We had the impôts query one of our jobs which didn't have a PdC or need one but there were three bathrooms in a four bed house and on reflection they said it could come under the 5,5% rate. I really think in this case because of that permis you need to get the TVA man to clarify the position because they will come after you or the artisan later on and charge interest too.It is a very grey area unless it is a small works.