VAT rate 5,5%          Financial assistance              Taxes

Some data about 5,5% VAT

The rate of 5,5% for the VAT has been introduced in France on the 15th of September, 1999, and has been renewed two times. It applies until the 31st of December, 2005 to the works done by a professional of building trade in a house more than two years old (less than two years old for emergency work) :
    for any type of house (individual, coowner)
    for any type of occupancy (main home, secondary home,nursing home)
    for any type of occupancy : owner, lodger.

The rate 5,5% applies to all the works : improvements, modifications, layout changes and maintenance. It also applies to some equipments acquisition, and in particular to raw material and components when they are supplied and invoiced by the company in the frame of the work they realize.

Buying, by the particular himself, of raw material and components, cannot benefit from the 5,5% rate. Only the manpower invoiced by the company using the material is submitted to 5,5%.

For which type of buildings ?

Any house (for home use) finished since more than two years.

House finished since less than two years in case of emergency works (plumbing for water leakages, ironwork in case of burglary of loss of keys, restoration after natural disaster).

Transformation into home house of a house previously used for something else (if building more than two years).

The communals of collective buildings and home normal outbuildings (balcony, terace, loggia, cellar, attic, private garage, building yard…).

For whom ?

The reduced rate applies to anybody  being invoiced for the work : a particular pesrson, owner of a house (occupied or vacant) as well as lodger.

Caution !

Invoicing at reduced rate is submitted to certificate. Prior to beginning of works, or latest before invoicing, the company must demand the customer, and keep by itself, a certificate stating that the works are done in a building used for housing, building being finished since more that two years.
Incoives from subcontractors are rated at 19,6 %, even in case of direct payment..
If a particular buys the material in a shop and makes them processed by a company, the TVA is at 19,6 % on the material and at 5,5 % on the company service..

All information about taxes and financial helps can be found on the web site of the French Fédération Française du Bâtiment : http://www.ffbatiment.fr/