France reduced rate VAT

Important: Please read also the comments that follow this post, which mention the changes in the regulations since this post was made – it is now harder to get reduced rate VAT on conversions and renovations than at the time of the original post (note added 3/5/07)

VAT on building renovations is usually charged at 5.5% instead of 19.6 %.

This reduced rate applies only to the ‘improvement, transformation and making habitable’ of buildings more than 2 years old.

Will VAT (TVA) at a reduced rate apply to your renovation project?

1. The building must be more than two years old

2. The reduced rate applies to work for owners and renters

3. The reduced rate applies to primary and secondary residences

4. The work must be carried out be a qualified enterprise that is correctly registered in France

5. If greater than 50% of the building is habitable building, the reduced rate will apply to all the works

6. If less than 50% of the building is habitable building, the reduced rate will only apply to the part that is habitable

7. The purchase and installation of the products must appear on the same invoice

Note: To be eligible for the reduced rate you will be asked to sign a form stating that the property is more than two years old, and that the work does not constitute either a new building or a new extension to an existing building.

4 responses to “France reduced rate VAT”

  1. Deborah Benn

    Can you get the reduced rate on a swimming pool installed in an old barn? There is a floor above which is getting renovated, so I estimate the swimming pool is either 50% or less of the building.

  2. Peter Edwards

    I own a property in France that is 20 years old.
    I am having a double garage extension added and the old internal garage is being converted into a bedroom.
    In addition the loft space is being converted into another bedroom.
    The builder says that due to a recent reinterpretaion of french reduced rate TVA that the whole project is subject to TVA at the higher rate.
    Is this correct?
    Peter