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Post by tim17 on May 28, 2024 7:55:25 GMT 1
Can anyone explain the rules regarding the charging of TVA on new build properties please. I always thought that new builds had a reduced rate of TVA but if you sold the property within a certain time frame then this 'discount' had to be repaid.
TIA.
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suein56
Member
Southern Morbihan 56 Brittany
Posts: 7,963
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Post by suein56 on May 28, 2024 9:03:26 GMT 1
In France the TVA on a new-build is 20% .. but any 'renovation' i.e. adding a porch, after 2 years, is charged at 10%.
This is why our neighbour had built a basic 2 bed house and then, 2 years later, added a deluxe ground-floor master bedroom with dressing room and en-suite shower room plus an extra loo.
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Post by jeliecrack on May 28, 2024 9:07:13 GMT 1
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Post by lapourtaider on May 28, 2024 9:19:27 GMT 1
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Post by tim17 on May 28, 2024 9:45:29 GMT 1
Eldest daughter bought a plot of land in Guadeloupe and is having a house built by a registered builder, she's now talking about selling the house as soon as it's finished. I had it in my mind that there are TVA penalties if you sell a new build within a defined number of years.
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suein56
Member
Southern Morbihan 56 Brittany
Posts: 7,963
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Post by suein56 on May 28, 2024 10:10:48 GMT 1
There might possibly be a 'capital gain' penalty unless your daughter is a registered developer.
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Post by iolar on May 28, 2024 10:22:59 GMT 1
So what happens if you DIY a house?
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mysty
Member
Posts: 1,728
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Post by mysty on May 28, 2024 14:23:00 GMT 1
So what happens if you DIY a house? If it's a business then you pay TVA on the difference between the buying and the sold price plus you get all the materials costs against the profit. If your are just renovating a house as a one of you will not pay TVA unless you do it more than once or twice. If all you are doing is going from one renovation to another with no other substantial income the tax office can go back ten years charging you TVA and social charges and don't forget the 40% min penalties. I do not think T17 daughter has much to worry about. |
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Post by iolar on May 29, 2024 14:34:32 GMT 1
So what happens if you DIY a house? If it's a business then you pay TVA on the difference between the buying and the sold price plus you get all the materials costs against the profit. If your are just renovating a house as a one of you will not pay TVA unless you do it more than once or twice. If all you are doing is going from one renovation to another with no other substantial income the tax office can go back ten years charging you TVA and social charges and don't forget the 40% min penalties. I do not think T17 daughter has much to worry about. No, I meant actually building a house from scratch to live in. |
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Post by jeliecrack on May 29, 2024 14:43:51 GMT 1
If you build from scratch yourself,you will pay TVA at 20% on all materials that you buy.There is no tax relief for self building why would there be?Reduced rates on certain items comes if you employ an entreprise to do the work.
Here is the forum page for les castors which is a site for self builders les-castors.fr/ |
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Post by iolar on May 29, 2024 16:35:32 GMT 1
If you build from scratch yourself,you will pay TVA at 20% on all materials that you buy.There is no tax relief for self building why would there be?Reduced rates on certain items comes if you employ an entreprise to do the work.
Here is the forum page for les castors which is a site for self builders les-castors.fr/Thanks for that. If there was tax relief for self build and the builder was going to live there for say 10 years this would be a significant reduction in costs allowing more people to own their own home. All the self builds I have seen in the UK have all been of a far higher quality than purely commercial builds. I have seen one self build here in France on a lotissement near to where I lived in the Aveyron - the materials, construction and design where far better than normal. |
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Post by jeliecrack on May 29, 2024 20:18:11 GMT 1
I don't understand why you think self builders are special and should have tax relief when if you have an entreprise build your house you have to pay full tva.
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Post by tim17 on May 30, 2024 5:40:02 GMT 1
Thanks for all the replies, our daughter and boyfriend (who's she's building the house with) are coming to the UK in a few weeks so we'll found out more about their plans as from the little information that we've been given they could find themselves in a bit of a mess. All we know at the moment is that they bought a plot and have engaged a builder who has just started the foundations, they are not married or PACS'd and haven't made wills so there are possible IHT implications should one of them die and the boyfriend now wants to sell as soon as the house is finished and move back to mainland France hence the initial question over TVA. The whole thing is bonkers and I'd like to put it down to the impetuousness of youth but they're in their early 30's.
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mysty
Member
Posts: 1,728
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Post by mysty on May 30, 2024 7:09:34 GMT 1
There may be different tax rules on the island.
A notaire or accountant would be the best place for advice.
Even France has different rules region to region tax wise.
When we started a company in the Cher in 2014 if you just bought and sold in the Cher you were tax exempt for five years.
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Post by iolar on May 30, 2024 14:25:44 GMT 1
I don't understand why you think self builders are special and should have tax relief when if you have an entreprise build your house you have to pay full tva. Simple - the builder is doing it as a job to earn money so he should pay tax. A self builder is doing it to put a roof over his head. In both the UK and France if you sell LPs/CDs/DVDs/cassettes which you've built up aka a personal collection to listen to, as of this tax year in both countries (and I imagine the rest of the EU) above a very low level you will have to pay tax. This is quite different from a professional seller who does it to make a living. Also there is the problem of how many people keep receipts for LPs/CDs they bought decades ago or s/hand at car boot sales. I've got receipts for audiophile LPs I bought in the 90s' and that's it. 1999 Santana's - Supernatural NM/NM is around €400. I had no idea then that LPs would become monetised Now if your Amazon and screw people in France for TVA @ 20%, more in other EU countries but then pay your TVA in Luxembourg where the TVA is 3% your effectively defrauding buyers of 17% but that's all legal. |
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