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VAT rate for renovations


Padzy

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Bonjour a tous.

We have heard a rumour that the current low (5,5%?) rate for renovations may end at 31st Dec this year! Also that renovations already "started" before then will continue to attract the low rate.

Can anybody shed any light on this, please? Thanks in advance, Padzy.

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The VAT rate of 5.5%  for renovations was due to be ended on 31st december 2005. It would then revert to the normal rate of VAT for building and renovations regardless. However, I have spoken to a few builders and Artisans who now say that there is so much pressure being put on the French Governement by the various artisan trades to keep this rate mainly becauses it does guarantee more work and prolonged employment for the said Artisans. Brussels are not happy with this, and the French will always do ther own thing anyway. I have seen nothing in writing to confirm these views so it could also be a bit of wishfull thinking on their part.  It's worth monitoring the situation so take nothing for granted.
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[quote]Bonjour a tous. We have heard a rumour that the current low (5,5%?) rate for renovations may end at 31st Dec this year! Also that renovations already "started" before then will continue to attract th...[/quote]

This seems to come up every year - the 5.5% rate has always been a 'temporary' rate and approaching expiry dates always give rise to rumours that it is ending. However, it has been continued every time so far, so there are grounds for optimism that it will carry on. But it has to end one day.
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Our monthly CAPEB literature is always mentioning this fact, but until 2005 approaches nothing will be done. Last year we were all sent "NO" postcards to fill in and send to Brussels and it seemed to work with pressure from all walks of life. Currently 5,5% on renovations works is due to expire 31.12.05
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