10% VAT to the work of building in 2014 : as you know, in January 1, 2014, the rate of VAT of your renovation will increase from 7% to 10%. This increase in VAT will apply to work completed as of January 1, 2014, even if they are started before this date. Yet, subject that the amendment be voted, the Ministry of Finance announced that 7% VAT rate will be maintained for the work which the quote will be signed before 31/12/2013 with a payment of deposit representing at least 30% of the total amount of the invoice (attention completion before 2014-03-01).
This amendment could help individuals who have decided to carry out their work in 2013, but not begin before the end of the year, and more companies will most bear the financial consequences of the increase of the VAT to 10%.
VAT at 5.5% on energy in 2014 renovations : If your renovation works are eligible in the tax credit (boilers condensation, thermal insulation materials, heating control devices, equipment for the production of energy using a source of renewable energy or heat or connection to a network of heat pumps and equipment recovery and treatment of stormwater), the VAT rate applied will be at 5.5%. This could apply equally to the work induced and inextricably linked to the main work for example movement of radiators or removal of soil in the case of insulation on low floor, and the tiles of the same kind replacing will also qualify for the reduced rate of 5.5%).
- VAT at 5.5% for extended work induced energy renovation
- VAT at 7% for signed quote and work approved before 31 December 2013
- The 7% VAT when signed estimate and deposit of 30% paid before 31 December 2013, work approved before March 1, 2014 (if completed after the 1ermars2014 the VAT rate will be 10% (except the deposit paid in 2013)
- VAT at 10%; quote signed in 2013 but not deposit paid in 2013
- VAT at 10%; signed quote in 2014
From January 1, 2014, the rate of VAT (value added tax) will be changed:
- the normal rate, which applies to the majority of goods and services, will increase from 19.6% to 20%
- the intermediate rate, which includes restoration, the sale of prepared food products, transportation, the work of renovation in old dwellings, will be increased from 7% to 10%
- the rate in Corsica will increase from 8% to 10%
- the reduced rate, to which are subject products considered as necessities (food and energy), will be lowered from 5.5% to 5%.