Pay VAT (TVA) at reduced rate during renovation in France

VAT (TVA) in France during property renovation

Finance Home : Costs of Renovation : Finance your Project : Tax and VAT / TVA : Reduced rate VAT rules

STOP PRESS: The below might have changed! Apparently now (March 2007) a major renovation is treated the same as a new-build and is subject to VAT at 19.6%, if the inside OR outside are being meterially modified. This includes most barn conversions which have no existing internal structure

The reduced rate applies to the 'improvement, transformation and making habitable' of buildings more than 2 years old.

Will VAT (TVA) at a reduced rate apply to your 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.