Reduced VAT rate

The Tax Authorities specify which conditions must be met to benefit from the VAT at 5.5%. Applicable for a wide range of work conducted by a professional at the residence of the private individual, this tax advantage will be maintained until 31 December 2010.

Conditions to comply with

VAT at 5.5% only concerns raw materials, equipment, and supplies, as well as home improvements, alterations, fit outs, and maintenance work.
The work and equipment must be respectively conducted and purchased by a company. If you purchase directly, you will be taxed at the rate of 19.6%.

Examples of the kind of work that applies at the reduced rate

• Large-scale work: erection and repair of a wall, excavation work, connections to public utilities, reroofing, restoration, electrical installation, lay in of bathroom facilities, creation of openings, materials used for the work performed (cement, tiles, wood, glass wool, etc.).
• Safety devices: intercom, fire doors, gas and smoke detectors, locks and bolts, guard bars and grids, etc.
• Openings and closings: doors, windows and skylights, window wall units, shutters, etc.
• Bathroom: connection of bathroom facilities to drainage or sewage systems, bathroom facilities, installation, replacement, or upgrading of plumbing, electricity, gas, etc.
• Kitchen: connection to electrical systems, electrical hook-up of household appliances, installation of cabinets and their permanent attachment to walls, etc.

Where to start?

Provide the company hired to do the work with a dated and signed certificate stating that the building (or house) is more than 2 years old and of the residential type. The Tax Authorities have established 2 models, available on the following site: www.impots.gouv.fr
Keep this certificate and any invoices issued by the company for at least 5 years after the work has been done.