- Provides a template letter for paying back a VAT supplement when the reduced 5.5% VAT rate under CGI article 278 sexies-0 A is later denied in social homeownership transactions.
- The letter requires identifying the property, the date of self-supply or acquisition, and the event that caused the reduced-rate relief to be revoked.
- It sets out the VAT recalculation method: taxable base × reduced rate, taxable base × standard rate, then the difference between the two.
- The repayment amount is calculated as the VAT difference minus a pro rata reduction based on years of ownership: D
- [(D x E)/10].
- Notes on calculating holding period: for supplies up to 31 Dec 2013, the holding period starts from the fifth year; for supplies from 1 Jan 2014 onward, it starts from the first year.
Source: bofip.impots.gouv.fr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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