As for work carried out in commercial, agricultural or industrial premises, they are subject to full VAT, which has now been reduced to 20%.
Reduced VAT to improve your home
10% VAT applies to a fairly large panel of works. These must contribute to the maintenance, development, improvement or transformation of a home. By works we mean the costs related to labour, raw materials allowing the work to be carried out and the supply of certain equipment.
Use of a professional to carry out the work
For the 10% VAT to be applied to raw materials and equipment, they must be supplied and invoiced by the company responsible for the work. If it is the customer who buys and supplies them, they remain subject to 20% VAT. Only the service provider’s workforce then benefits from reduced VAT. Using the 1099 tax calculator is fine there.
Are you having a fitted kitchen installed?
In this case, in addition to the labour of the service provider who installs it and supplies it to you, the reduced rate of 10% applies to storage elements because they are incorporated into the premises in which they are installed. On the other hand, household equipment (ovens, hob, refrigerators, etc.) remains subject to the normal rate, even if they are integrated into the furniture.
You will not be able to benefit from a reduced rate VAT if your work increases the surface area of the premises by more than 10% or if it is of such importance that it is comparable to manufacturing new. Similarly, work to raise the existing building does not benefit from the 10% rate.
10% VAT for the purchase of equipment
Provided and invoiced by the company you have chosen, here is a small list of equipment that will be purchased with reduced VAT:
- the housing opening and closing systems, in other words, the doors, windows, shutters
- stationary heating, air conditioning or energy production equipment
- regulation to improve the heating system
- insulators
- sanitary equipment such as baths, shower trays, sinks, etc.
- electrical equipment and lighting installations: electrical panel, sockets, etc.
- security equipment such as cameras, alarms, digital codes, smoke detectors, etc.
A reduced rate of 5.5% is applicable to energy renovation work eligible for the tax credit (installation of a condensing boiler, a heat pump, thermal insulation, etc.)
Are you considering remediation work?
- Installation work, upgrading or maintenance of individual sanitation systems, as well as connection work to the public sanitation network benefit from VAT at a reduced rate.
The formalities to benefit from a 10% VAT
For the reduced rate VAT to apply, a few simple steps must be taken. To benefit from this VAT, you must provide the company, before the start of work or at the latest at the time of invoicing, a certificate provided by the service provider certifying that the building has been completed for more than two years. It will also mention that it is for residential use (partially or totally).
Remember that the work should not ultimately contribute to the realization of a new building or do not lead to this result. This certificate will be kept by the company. Standard models of certificates can be downloaded from the vosdroits.service-public.fr site: either the simplified certificate or the normal certificate depending on the importance of the work carried out .