French Property – 14.1% Saving on Renovations
If you are performing renovations on a property in France, you must be conscious of a tax concession which enables you to minimize the sales tax on supplies from 19.6% to five.five%, thereby saving you 14.1%. On modest items this could possibly not appear significantly, However if you had been performing a significant renovation of 50 000 euros on your French property, you would save about 7 000 euros basically by taking benefit of it.
Under French tax laws, sales tax (which is know as TVA in France) is 19.6% on most items, which includes material for function on your home (e.g. construction, renovation or redecoration). Nevertheless, if the function is carried out by a expert, all supplies supplied by him would be taxed at five.five% rather of 19.6%. Consequently, instead than acquire the supplies and the services separately, there is a powerful monetary advantage to having the supplies bought under the organization name of the expert performing the function.
The most beneficial way to do this is to 1st pick the tradesman who will be performing the function and then to arrange for him to purchase the supplies necessary. When performing this, guarantee that he does not include a mark-up for this. In truth, given his trade discount, he need to charge the exact same or less for supplies than if you had been purchasing them. If he does not agree to this, ask him if you can select up the supplies, However under his organization name. If he does not agree to this, believe about discovering somebody else.
Note that this discount is accessible only if the function is performed by a registered expert or company. The quickest way to check this is to ask for their organization registration number (recognized in France as their SIRET number) and to see their SIRET registration document.
You really should also confirm that the function is eligible for the decreased tax rate. Pretty much all renovation and redecoration function is eligible, topic to specific restrictions. One of these is that the property should be at least 2 years old. One more is that it will need to be a renovation, instead than a total rebuild. The easiest way to confirm that you qualify is to talk about the function with your tradesman and have him give an estimate (identified in France as a devis) specifying a tax rate of five.five%.
To summarise, there are three significant activities: make certain your function is eligible for the decreased tax rate, make sure that your tradesmen are registered, make certain that supplies are bought at price under the company name of the tradesmen. You will then have secured the lower tax rate.
It is also worthwhile noting that this saving is worthwhile even on smaller projects. For example, if you purchased a radiator for 200 euros and installed it your self, the complete price would be 239.20 euros (200 euros, plus tax of 19.6 percent). Nonetheless, if you hired a plumber for 25 euros to install it for you, the complete price would only be 237.38 euros (200 euros, plus 25 euros, plus tax of five.five%). So it would be less expensive to hire a expert to do the function than to do it your self.
FPSI French Property supplies exclusive content on France and French property. For related information and facts, go to our internet web page at http://www.france-property-and-data.com If you would like cost-free distinctive content for your internet web site (topic to inclusion of copyright statement and link), please get in touch with us.
Post
Related Blogs
- Related Blogs on French Property – 14.1% Saving on Renovations
Recent Entries
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- August 2010
Blogroll
You must be logged in to post a comment.