TVA on new builds

[Les]

This may be good news for some.  I heard through a notaire today, that the VAT payable on new build property sold within the 5 year ownership rule, is now abolished from immediate effect, and therefore no VAT to pay.

He still working through the 100+ pages to verify whether this also applies to property, that has been renovated/extended and normally coming under the new property regs. for vat and properties that are sold within 5 years.

The fly in the ointment could be, that the reduced notaires fees will  no longer apply.

[danny]

Talked to a notaire this morning and he said that the matter was up for discussion and nothing would happen for some time.

[Les]

It seems there is still some difference of

opinion amongst notaires, as to how this applies. We are waiting for written confirmation.[8-)]

[BJSLIV]

It's a typically French situation.

The law reforming VAT on property has been published today

http://www.fiscalonline.com/Reforme-de-la-TVA-immobiliere-la,1790.html

The instructions implementing transitional arrangements will be published soon, but as it doesn't say anything to the contrary one has to assume that the rules, whatever they will be are already in effect!

 

[danny]

What does it say. I tried translating but as soon as I got to article 16 it reverted to french.

[Les]

It has been confirmed to us today, that TVA will no longer apply on the sale of a new build within 5 year years of construction.

The notaires fees, will now be at the normal rate for house sales.

[danny]

Thats great, thanks for the information.