How is the reduced VAT rate applied to work carried out in homes?
The reduced rate of VAT applies to work carried out in homes, under certain conditions.
What is the reduced VAT rate?
The reduced VAT rate is 5.5%. It is lower than the standard VAT rate of 20%.
What work is eligible for the reduced VAT rate?
The reduced VAT rate applies to work carried out in homes, including:
- Renovation work
- Repair work
- Maintenance work
- Conversion work
- Extension work
What are the conditions for benefiting from the reduced VAT rate?
To benefit from the reduced VAT rate, the work must be carried out in a home that is:
- Completed for more than 2 years
- Used as a private residence
- Occupied by the owner or by a tenant
How to apply for the reduced VAT rate?
To apply for the reduced VAT rate, you must provide the craftsman or company carrying out the work with a certificate of completion of the property. This certificate must be dated more than 2 years before the start of the work.
What happens if the work is not eligible for the reduced VAT rate?
If the work is not eligible for the reduced VAT rate, the standard VAT rate of 20% will apply.
Penalties for misuse of the reduced VAT rate
Any misuse of the reduced VAT rate is punishable by a fine.
Additional information
The reduced VAT rate also applies to the supply of materials and equipment for work carried out in homes.
For more information, please visit the website of the French tax authorities: www.impots.gouv.fr/
Comment s’applique le taux réduit de TVA sur les travaux réalisés dans les logements ?
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economie.gouv.fr a new article on 2025-01-03 08:23 titled “Comment s’applique le taux réduit de TVA sur les travaux réalisés dans les logements ?”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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