VAT at reduced rates: For what works and premises
In new construction, the VAT rate is 20%, but when you carry out renovation work in your home , the applicable rate is 10%, or even 5.5% . To benefit from it, your home:
- Must have been completed more than two years ago
- Must be assigned to residential use only, primary or secondary residence whether you are owner, tenant or free occupant
This VAT rate is applicable to labor and supplies , where you purchase your own materials at 20%. So make an exhaustive list of your supplies and ask your contractor to buy them, you already earn 10 points!
The VAT rate of 5.5% is applicable to energy renovation work (insulation, energy production equipment using a renewable energy source).
For these two rates, it is appropriate not to affect the structural work or more than five elements of the secondary work: Partitions, plumbing, heating etc.
In order to benefit from a reduced VAT rate, it is imperative to have the work carried out by a professional and to complete the simplified VAT certificate.
For more informations, it's here .