In France, taxes (known as VAT or sales tax in the UK, USA) TVA is called the distribution of value added tax is an abbreviation for (either in original French: Taxe sur value added ). It 'set at 19.6% (for most goods and services) and 5.5% (for some goods and services).
TVA (VAT) Property Renovations & Extensions
If you are buying a property in France, you should consider that in materials and workmanshipThe costs for renovations or extensions less is taxed at 5.5% instead of 19.6%, and the following three conditions:
The house is at least 2 years. If the house almost 2 years old, you might want to wait a couple of months until it crosses the threshold of two years, lowering the tax rate from 19.6% to 5.5%.
The renovations are small to medium size. If your property needs renovation, may be worth in this production are small individualRenovations over time, the benefits for the lowest tax rate. individual jobs within a period of two years can be considered as a single element of the important place that could be directed to be more than two years in addition to "prevent a renewal of" important threshold.
Work will be performed by a business person registered. Please ask the person a written estimate of work (known in France as "You"), which should show their VAT number. This will have awritten in advance to prove that they can and will work with a fee of 5.5%.
Note that the reduced rate of 5.5% is applicable only if all three conditions are met. For example, if the same materials rather than the craftsmen who buy to buy, you will end up paying 19.6%. Of course, you can still collect and pay for the materials (eg, if you do not want a worker to leave their jobs, receiving little more material), but make sure it is purchased undermerchant's account, which allows to benefit from reduced rates.
some additives (such as a swimming pool or tennis courts) are considered "luxury goods" and are expressly excluded from the reduced rate. If you are unsure if the proposed work is qualified or not, so that the craftsmen doing the work, a written estimate, indicating the reduced rate (as above) or confirm with your tax office.
As an example of the value of the reduced tax rate, Irecently had a plumber install cost me € 20 to € 200 cooler. If I bought the radiator and install it yourself would cost € 239.2 (200 € 19.6% VAT), while a professional plumber, the work was only € 232.1 (220 € 5.5%). It 'been cheaper to do a professional job, as they have to do it myself!
If the work is finished, the craftsman must provide a certification that the work has been done on reducing5.5%. All these documents should be kept until the end of the fifth year following the completion of work as are legally required to provide such documentation should be available at the request of French tax office. In practice this is extremely rare, but it's worth filing of documents in case.
Although a quote prior written by a craftsman professional 5.5% means that he only charged this amount if the tax office should investigate (unlikely, but available), and decide that 19.6%due, it is you, rather than the trader, is that the burden of paying the additional fee for the tax office. Of course, you can groped to regain the additional cost to the merchant, said that wrong, But success depends on this action to the particular circumstances.
TVA (VAT) in French property sales & purchases
When buying a new build property (ie aged under 5 years) or a property that had a complete restructuring (for example, is uninhabitablebefore restoration), then the sale of the property tax debt to 19.6%. Therefore, before signing a bid for a property or contract, or must be willing to pay those taxes or to ensure that they are not applicable to confirm (or get a lawyer, or a clause in the contract if the seller accept all these costs should apply) to accept. If you buy a property that is almost 5 years, you may want to delay the purchase ofproperty until it exceeds the threshold of 5 years, and the need to pay the taxes.
If you sell an item for VAT at 19.6% are aware that the costs of such informed buyers in negotiating the price factor. So if you are a property that is near the threshold of 5 years, you may want to delay the sale until the tax is applicable, so you can get a better price.
Value Added Tax (VAT) and CompensationReclamation
You can retrieve rembursement TVA (French tax) if:
You have goods that you buy or get rid of France,
You have a business idea that another country is registered in France.
If you want to reclaim VAT, you should be aware that probably is responsible for sales tax (VAT) in the country of destination. For example:
If you buy goods in France, the United States takes the land,Although it is possible in French taxes you may be able to the United States, the relevant tax sales.
If you are a business that is licensed in foreign countries and buy goods or services in France, you can call in, French VAT can then be subject to VAT (sales tax) in the country of registration.
Therefore, the VAT reclamation not be a rewarding process when you need to pay in another country. The main advantage is that if the tax rate in France is overanother country (in this case, you win by paying a lower tax rate) and the amount of tax at issue is sufficient for the expenditure and documents in support of a claim.
All requests for reimbursement, paid the original bill. attempt by the attempts by the French tax authorities as an element of tax credits (ie to deceive, refunded taxes twice or more often), have the tax on original documents such as copies.
There are a number of specialized companies thatwill do the paperwork and request a refund of VAT for you (if you do a search on Google for relevant keywords). Alternatively, if you contact the French tax office can provide the appropriate form so that we can recover. Better yet, contact your local tax office and request a copy of the new European module (in English) for the VAT refund.
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