Summary
- The reduced VAT rate for renovation works on residential buildings more than two years old applies only where the statutory documentary requirements are met.
- Customer certificates and supporting invoices are essential to substantiate the application of the reduced rate.
- The right to deduct input VAT also depends on objective evidence that the VAT was properly charged and paid.
Article
The Administrative Court of Appeal of Versailles confirmed that ID Concept could not apply the reduced 10% VAT rate to renovation works because it failed to produce the customer certificates and invoices required under French law. The Court also denied the deduction of input VAT due to the absence of supporting documentation demonstrating that VAT had been correctly incurred. The judgment highlights the importance of maintaining complete documentary evidence to support both reduced VAT rates and input VAT deductions.
Sources
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- Article 279-0 bis of the French Code général des impôts
- BOFiP – Reduced VAT Rate for Renovation Work
- PwC
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