Reduced VAT on home renovation: for what kind of work?
If you are renovating your home, you can benefit from a reduced VAT rate of 10% or even 5.5% instead of the standard rate of 20%.
What work is eligible? What conditions do you need to fulfil? We’ll explain.
What will change in 2025 ?
The reduced VAT rate for the supply and installation of fossil fuel boilers has been abolished with the 2025 Finance Act.
The VAT rate, previously 5.5% or 10% depending on the type of appliance, will increase to the standard rate of 20%.
And whereas until now it has been necessary to complete a certificate guaranteeing compliance to benefit from a reduced VAT rate of 10% and 5.5% for certain types of work, a simple declaration on the invoice or estimate will now suffice (Article 41 of the Finance Law for 2025).
Read all about it in this article.
What are the reduced VAT rates?
Value Added Tax (VAT) is a tax levied directly on the goods you consume or the services you use.
The standard rate is 20%.
However, two reduced VAT rates apply to certain types of work:
– a reduced rate of 10%,
– a reduced rate of 5.5%.
Depending on the work performed and under certain conditions, you may be eligible for one of these reduced rates.
Reduced VAT rates: Who can benefit?
Reduced VAT rates apply to work carried out by :
– homeowners
– landlords
– joint owners’ associations
– tenants
– independent residents
– non-commercial property companies (SCI).
Reduced VAT rates: for which homes?
To be eligible for a reduced VAT rate, the work must be carried out in homes that fulfil the following criteria:
1. They must have been completed more than two years before the start of the work,
2. used for residential purposes or intended to be used for residential purposes when the work is completed.
The property can be occupied as a primary or secondary residence.
Reduced VAT rates: for what work?
Work subject to the VAT rate of 10.
VAT at a reduced rate of 10% applies to improvements, conversions, fitting out and maintenance work, with the exception of the part corresponding to the supply of household equipment or furniture and the purchase of certain major items of equipment (Article 279-0 bis of the General Tax Code).
Med venlig hilsen / Kind regards
Cabinet Nicolas BRAHIN
Advokatfirma i NICE, Lawyers in NICE
Camilla Nissen MICHELIS
Assistante – Traductrice
1, Rue Louis Gassin – 06300 NICE (FRANCE)
Tel : +33 493 830 876 / Fax : +33 493 181 437
Camilla.nissen.michelis@brahin-avocats.com
www.brahin-avocats.com
