Iceni Posted January 1, 2005 Share Posted January 1, 2005 My friendly builder (English but reg in France) buys materials paying 19.6% TVA and then sells them to me with no markup adding just 5.5% TVA. He has been advised by his accountant that this is illegal - the addition of just a few euros will make M Fisc a happy bunny. Probably not relevant to many but I thought I would let you know.Johnnot Link to comment Share on other sites More sharing options...
BJSLIV Posted January 1, 2005 Share Posted January 1, 2005 Its illegal because the low rate TVA is only applicable to a maintenance job done by registered artisan.The supply of goods alone, or non-maintenance work is always at the higher rate. Your friend risks a significant penalty if detected, which could also apply if he has been hiding your goods in other low rated jobs. It may also provoke a more detailed investigation if they suspect that he is in someway linked the black economy.On that note Happy New Year. Link to comment Share on other sites More sharing options...
Bobc Posted January 1, 2005 Share Posted January 1, 2005 John,As the previous poster has pointed out, this is illegal - also what is in it for your builder unless there are other issues involved.Presumably he provides you with an invoice with a TVA number and you pay with a French Euro cheque.To provide you with cheaper materials he is leaving himself out of pocket until he gets a refund from the Impots.The whole point of the reduced rate of TVA was to encourage the building/renovation industry in France by allowing artisans to invoice qualifying work at 5.5% TVA.If I purchase a kitchen from Lapeyre at 19.6% TVA, I can then invoice it to my client at 5.5% TVA as part of a complete installation. This has to be a realistic amount and not a 'few Euros'.There always seems to be people that want to beat the system - eventually the Impot will pick them up!Kind regards,Bob Clarkehttp://perso.wanadoo.fr/grindoux Link to comment Share on other sites More sharing options...
Iceni Posted January 1, 2005 Author Share Posted January 1, 2005 The artisan is doing the full installation and the work. It seems that to be legal he needs to make a profit on the materials as well.All work qualifies for the reduced rate of TVA. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.