Michelle Posted May 17, 2006 Share Posted May 17, 2006 Can anyone tell me if you pay V.A.T. on building materials in France.I understand that in the UK there are VAT refunds for DIY homebuilders and Converters where private individuals can reclaim the VAT on labour and materials without having to be VAT registered, does anyone know if there is a similar scheme in France. Also are there any specific renovations qualifying for grants.thanks in anticipation Link to comment Share on other sites More sharing options...
Iceni Posted May 17, 2006 Share Posted May 17, 2006 Yes you have to pay TVA which an unregistered person/business cannot reclaim.If you buy them yourself you pay 19.6% but if a registered artisan supplies and fits you MAY benefit from the reduced rate of 5.5%. He of course suffers a cash flow deficit of 14.1% for n months or years.Johnnot Link to comment Share on other sites More sharing options...
Cassis Posted May 17, 2006 Share Posted May 17, 2006 VAT is the standard 19.6% on building materials for DIY-ers in France, same as most other goods. If you employ a professional, registered plumber, mason, carpenter, electrician etc. for work on certain types of projects there is a reduction to 5.5% VAT on goods and services. E.g. the building has to be an existing habitation (so barn conversions don't qualify) and over a certain number of years old (I can't remember but I'm sure someone here knows). Most grants require goods to be provided and fitted by a professional - your local mairie usually has information on this. Sorry![:(]Phil Link to comment Share on other sites More sharing options...
booboo Posted May 17, 2006 Share Posted May 17, 2006 I think it's 2 years old Link to comment Share on other sites More sharing options...
BJSLIV Posted May 17, 2006 Share Posted May 17, 2006 The important point to understand that the tax position of Newbuild and Renovation is almost the exact reverse of the situation in the UK.In the UK newbuild has no VAT whereas repairs are full rate. In France newbuild is full rate and repairs (sometimes) are low rate.In addition there is a concession made in the UK whereby selfbuilders can exceptionally reclaim VAT on materials without registering for VAT, whereas in France any work carried out by non registered persons will always attract VAT at full rate.On a nit-picking point, I would guess that registered traders are only out of pocket (cash-flow wise) from the time that they pay their suppliers until they submit their next VAT return. Link to comment Share on other sites More sharing options...
Iceni Posted May 18, 2006 Share Posted May 18, 2006 [quote user="BJSLIV"]On a nit-picking point, I would guess that registered traders are only out of pocket (cash-flow wise) from the time that they pay their suppliers until they submit their next VAT return. [/quote]Not quite - a newly registered artisan has to wait for a much longer period before the FIRST repayment of TVA. In the case of an acquaintance it was almost 2 years but thereafter it was a month or so after submitting the quarterly return. Except a new rule has come in that the repayment will not be made if less than 500 or 750 €, can't remember which.Johnnot Link to comment Share on other sites More sharing options...
Val_2 Posted May 18, 2006 Share Posted May 18, 2006 Our yearly TVA reimbursement came through on tuesday this week. You don't get any reimbursement until your accountant has verified all the accounts and submitted the special TVA reclaim form each year. Its a lot of money to be out of pocket too for over a year. Link to comment Share on other sites More sharing options...
Michelle Posted May 19, 2006 Author Share Posted May 19, 2006 Many thanks to you all for your prompt replies. Link to comment Share on other sites More sharing options...
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