France Sales Tax and Property Renovations

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Feb 262011

Click Here for France Sales Tax and Property Renovations

In France, sales tax (recognized as VAT in the UK or sales tax in the USA) is referred to as TVA, which stands for Tax on Value Added (or in the original French: Taxe sur la Valeur Ajoutée). It is set to 19.6% (applicable to most goods and services) or 5.5% (applicable to some goods and services).


TVA (VAT) on French property Renovations & Extensions


If you are purchasing a property in France, you ought to take into account that materials and labour costs for renovations or minor extensions is taxed at 5.5% instead of 19.6% supplied that the following 3 conditions are met:




  • The home is at least 2 years old. If you home is just under 2 years old, you could wish to wait a few months until it crosses the 2 year threshold, lowering your tax rate from 19.6% to 5.5%.

  • The renovations are minor to medium in size. If your property wants main renovations, it might be worth staging this into separate smaller renovations over time, in order to benefit from the reduced tax rate. Person jobs carried out within a 2 year period can be considered as a single item, so main items may well ought to be staged to happen much more than 2 years apart to steer clear of the ‘main renovation’ threshold.

  • The work is carried out by a registered trades individual. It is advisable to have the individual performing the work supply a written estimate (recognized in French as a ‘devis’), which will need to show their TVA registration number. This way you have a written document in advance showing that they can and will charge the work at 5.5%.

Note that the reduced rate of 5.5% is only applicable if all 3 conditions are met. If, for example, you obtain the materials your self instead of having the tradesman get them, you will end up paying 19.6%. Of course, you can still choose up and pay for the materials your self (for example, if you don\’t want a workman to leave the job just to purchase some a lot more materials) but make certain that it is bought under the tradesman’s account so that you can benefit from the lower tax rate.


Sure additions (including a swimming pool or a tennis court) are considered ‘luxury items’ and are specifically excluded from the reduced rate. If you are unsure if the planned work qualifies or not, make sure that the tradespeople performing the work offer a written estimate showing the reduced rate (as described above) or confirm with your local tax office.


As an example of the value of the reduced tax rate, I recently had a plumber charge me 20 euros to install a 200 euro radiator. If I had bought the radiators and installed them myself it would have cost 239.2 euros (200 euros at 19.6% tax) whereas having a professional plumber do the work it was only 232.1 euros (220 euros at 5.5%). It was cheaper to have a professional do the work than to do it myself!


When the work is carried out, the tradesperson ought to present you a document certifying that the work was carried out at the reduced rate of 5.5%. All such documents ought to be saved until the end of the fifth year following completion of the work, as you are legally needed to supply such documents really should the French tax office request it. In practice, this is very rare, but it is worth filing the paperwork just in case.


Even though a written estimate from a professional tradesman quoting 5.5% means that he can only charge you this quantity, if the tax office must investigate (unlikely, but feasible) and choose that 19.6% is due, it is you rather than the tradesman that will be responsible for paying the much more tax to the tax office.  Of course, you can try reclaiming the extra costs from the tradesman that misquoted but success in this action would depend on the specific circumstances.


TVA (VAT) on French property Sales & Purchases


If you obtain a new create property (i.e. under 5 years old) or a property which has had a complete renovation (e.g. it was uninhabitable just before the renovation) then the sale of the property is liable to taxes at 19.6%. Consequently, prior to making an present on a property or signing any contract, you really should either be prepared to pay these taxes or make certain that they are not applicable (either by having a notaire confirm it, or having a clause in the contract where the seller agrees to accept any such costs really should they be applicable). If you are purchasing a property which is nearly 5 years old, it might be worth delaying the get of the property until you cross the 5-year threshold, thereby removing the must pay TVA taxes.


If you are selling a property which is subject to TVA at 19.6%, be conscious that informed purchasers will factor this cost into the price negotiations. Consequently, if you have a property which is close to the 5-year threshold, it may well be worth delaying the sale until this tax is no longer applicable, so that you can secure a greater price.


VAT (TVA) Reimbursement & Reclaiming


You could be able to reclaim TVA (rembursement France VAT) if:




  • You have purchased goods which you take outside France, or

  • You have a organization which is registered in both France and yet another country.


If you decide to reclaim TVA, you must be conscious that you will then most likely be liable for sales tax (VAT) in your destination country. For example:




  • If you purchase goods in France which you take out of the country to the USA, Even though you could reclaim the French tax you may perhaps then be liable to the USA equivalent sales tax.

  • If you have a organization which is registered abroad and acquire goods or services in France, whilst you might reclaim French TVA you may possibly then be liable to VAT (sales tax) in your country of registration.


Consequently, reclaiming TVA might not be a worthwhile procedure, if you then have to pay it in an additional country. The major benefit of this is if the tax rate in France is higher than the other country (in which case you gain from paying a lower rate of tax) and the quantity of tax involved is sufficient to justify the effort and paperwork of making a claim.


Applications for a refund want the original paid invoice. Due to attempts to defraud the French tax office by multiple claims on 1 VAT item (i.e. attempting to have the taxes refunded two or a lot more times), the tax office insists on original documents rather than copies.


There are a number of specialist firms that will do the paperwork and reclaim VAT for you (if you do a Google search on relevant terms). Alternatively, if you contact the French tax office, they can present the suitable form so that you can reclaim your self. Greater yet, contact your local tax office and request a copy of the new European form (in English) for VAT refunds.


FPSI is a UK registered organization which provides French property for Sale and offers info related to France and French property, such as a French property News Feed


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My Provence - Mistral, the Wind of Wrath

Aix-en-Provence, Antibes, Avignon, Beaulieu-sur-Mer, Cannes, Provence Alpes Cote d'Azur, Saint Paul de Vence, Saint Tropez Comments Off
Feb 212011

It can blow for days, will chill your bones and can turn folks insane. I am talking about the Mistral, a fierce wind ruling over Provence.

The Mistral is a cold wind born on the Massif Central, the eroded remains of a massive volcanic range in the center of France, north of Provence. Mistral gushes down the Rhone River reaching as far as North Africa across the Mediterranean Sea – a pump flushing away any low-pressure system threatening Provence.

Locals in Provence by no means talk about the weather. No want as Provence is sunny 99% of the time. On the other hand, they will talk for hours about the Mistral.

They will tell you it blows for three, 6, 9 or 12 days. They are convinced it comes in numerous of three days.

The Mistral can blow furiously in winter – till March. The rest of the year, it will cool you down in a especially welcome way. It will also save your trip to Provence, as whenever it blows it will not rain.

At its worst, in winter, it will discover its way – any accessible way – to chill your bones. No zipper ever protected me from the penetrating Mistral.

Generations of locals lived with the Mistral and developed proven techniques to protect and shelter their household.

Traveling via Provence, you will notice heavy stones scattered on old tiled roofs. They are utilized for ballast to stop uplift caused by Mistral. You will also notice fields bordered on the north side by huge trees to stop wind related erosion. Standard houses have blind walls exposed to the north. Tightly planted cypresses are grown along exposed roads.

The Mistral is significantly extra than its effect on nature; it drives locals insane, it dries the skin and cracks lips. It blows steady then comes in gusts.

The Mistral threatens trees that are not deep-rooted and cars can be pulled in the ditch. Even though walking, I bear in mind being forced to a halt attempting to resist its pressure.

Two years ago we planned a key renovation to our household in Provence. I ought to have began the work in October but the house was booked. By mid November when the house became offered, it was too late as I wanted to be back in Canada for Christmas.

I began gutting the house in January. Then the Mistral began. According to locals, it was one of the worst they had seen in years. Every thing froze in the house, which includes a radiator that exploded spraying the walls with black mud accumulated in the pipes after years of use.

I may possibly not get sufficient protection, wearing sweaters over sweaters, wool hats and gloves and still freezing to death. The house available little protection as I had a gaping hole in the wall I had opened to install a French door.

A couple of valves from the watering system froze in the garden. I was not ready to realize Provence may possibly get cold in winter. I bear in mind the Mistral toying with me Although attempting to carry gypsum boards in the house. I learned to hate the Mistral the identical way locals do in winter.

The Mistral is fought. One fights to walk, to temper its effect, to stop it from rushing by means of doorsills, stairways, vents and chimneys.

One gets tired fighting every single second of the day. One gets tired of the dryness, its constant howling and its sudden gusting roar. Nights turn into nightmare as furious ghosts travel the sky, shake the house from roof to floor and rattle the loose tiles on the roof.

The Mistral by no means stops invading. It engulfs the narrow streets with a piercing scream. It engulfs the trees, bending each branch to its will.

Last spring, on marketplace day – held each Friday in Carpentras – Elsa and I had been walking in the packed streets toward a fruit store. Its owner is a colorful woman, especially witty with multicolored hair ranging from blue to purple and pink. As usual, she was managing a significant crowd in front of her store facing the town hall.

Each Friday she is allowed to push her store into the street. She then protects her goods and patrons with an awning. A gust of Mistral lifted the awning. Its heavy steel stiffener crashed down on the strawberry baskets, missing her head and that of a couple of consumers by much less than an inch. She disappeared under the awning. We had been quite concerned and ran to her to offer support. We had been met by a loud “Sacre Mistral” (Damn Mistral). Many shoppers agreed. Life went on. Everybody is utilized to “Sacre Mistral”. I told her she must fasten the awning to the wall but she went on with her company, concerned with the couple of minutes lost selling vegetables and claiming she was utilized to it.

The Mistral is soothing from spring to fall. Clearing the sky and the dampness of the summer days. The Mistral opens the horizon. It contributes to growing the greatest grapes and to keeping Provence sunny. On a hot summer day when the Mistral lifts, you will really feel the need to have for a light sweater – a pleasant rest.

****

Elsa and I, it appears, are wind lovers. We live on a wind-swept plateau in Quebec, beside the highest working farm in all of Canada, on top of owning our place in Provence where the Mistral is king.

****

Here is the link to La Peyriere, our house in Provence:

http://www.holiday-vacation-rentals-plus.com/provence-villa-with-pool-1.html – La Peyriere – stone Provence villa with pool, 2 acre wooded residence. Vaucluse, Avignon, Carpentras, Mont Ventoux. Lavender, vineyards. Each comfort. three fully private units, each w private terrace on separate side of the house. Charm, tranquillity.

You can also send comments.

And here is our full vacation rental internet site:

http://www.holiday-vacation-rentals-plus.com/ – A wide range of attractive holiday vacation rentals plus short term rentals. Fully equipped. Condo, villa, chalet. Montreal. Provence. Quebec. A household away from residence.

Plus, here is a link to Elsa’s internet site, packed with stories, music, a creativity blog, as well as articles and opinions for the curious mind:

http://www.elsas-word-story-image-notion-music-emporium.com/index.html – All her life, creativity has played an enormous component. The magic of story, music, concept. In Elsas word story image notion music emporium, there’s space for numerous forms of creativity, such as creative thinking.

****

Philippe Guerin – I left Provence years ago. Settled in Quebec and forgot about Provence. Two years ago, I renovated our household in the heart of Provence and felt the region was reaching me deeply. Thus my require to share my experience and vision of Provence.

I also traveled extensively for my work and have often tried to realize the culture and individuals I visited. I by no means failed noticing that persons and locations form a rich ecosystem. That is the core of my words.

****

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Renovating and Maintenance of a Home in France

Uncategorized Comments Off
Feb 132011

Click Here for Renovating and Maintenance of a Home in France

Normally expectations are high when initial looking for a House in France, but after visits to chosen areas have been made and you have looked at innumerable properties with inadequate facilities, your perspective changes.


A excellent number of the older stone houses on the market are in require of work to put them in fantastic order having either been left empty for years or just Normally neglected. A lot of men and women who contemplate purchasing a home in France have already considered undertaking a restoration project to some degree. There is obviously a danger in purchasing residence in a run-down condition but there are benefits if you follow the rules.


Study and groundwork


Study and groundwork in the beginning will pay dividends later. Make contact not only with agents but also with architects, builders and even Geometres or Expertises (Surveyors) if required to acquire as significantly info as feasible prior to your visit. Follow some easy and maybe blindingly obvious ‘ground rules:


0. Fix your spending budget and don\’t take on anything that will obviously pass your limits.


0. Don\’t acquire on impulse; it is far better to come back and take yet another lengthy look.


0. Take notes and photographs as a reminder; one hour processing exists in France too!


0. Ask to see for your self that there is a supply of electricity and that this supply is adequate.


0. Check the condition, if any, of the fosse septique (septic tank). Need to a new one be required, is it achievable to install one successfully.


0. Make sure that there is a ‘town’ (mains) water supply.


0. Have a copy of the ‘cadastre’ (land registry) plan for reference.


0. Check that the roof is in great condition, the ridgeline is straight and roof timbers (the charpente) are sound.


0. Usually Make sure that there are no main repairs necessary to the Home which are obvious but which you are told are ‘mere trifles’ – structural repairs are just as pricey in France as anywhere.


0. If in doubt – instruct an Expertises – a French Surveyor, who can advise you on the condition of your prospective House as well as how a lot it will cost to put appropriate. See the section on Surveying in France.


0. Seek local guidance. A excellent deal of info can be obtained from ‘the locals’.
Local Tradesmen


If there is some work to do, no matter how significantly or how small, if you are employing a builder rather than performing the work your self, try to use local tradesmen if feasible and Generally Make certain that the builder you use is correctly registered in France. Any competent architect or builder can see main defects in buildings and warn you. A lot more critical, they can Frequently envisage the ideal way to restructure a building when all you are looking at is a ruin.


Make certain that if you will need the services of an architect and/or builder that they are registered. You have no recourse in French law if you use an individual who is undeclared or works clandestinely. In France all traders Will need to have a SIRET NO and you can verify the trader’s registration by making use of the MINITEL 3617 code SIRENE. Draw up plans and written specifications for work to be undertaken by a builder and purchase estimates/quotations prior to commencing work. Generally ask for the following:


0. The Siret number. This is issued by the Chamber of Commerce and signifies TVA (VAT) registration.


0. Decenel Insurance. This is a kind of insurance bonding, which provides the builder’s client, a guarantee of workmanship for up to 10 years depending on the work carried out.


0. Responsabilité Civile. This is third party insurance that offers cover in case the builder accidentally causes damage to the Home throughout the course of renovation works.


Building Work


It is significant to maintain each and every single receipt for building work carried out on a residence so that these prices can be set against the perceived ‘gain’ on the resale of the house for French Capital Gains Tax. All receipts from materials and labour Ought to also be kept in order to prove that TVA has been paid on the building works.


If you are having work carried out on a residence, then it is required that you Must arrange to have some thing referred to as Dommage et Ouvrage Assurance. This is in addition to buildings insurance and covers you against the builder or one of his men having an accident on your house. It will also support you to claim against poor workmanship.


Usually get a devis (estimate) for any work that you intend to have carried out to your residence. This Ought to be very detailed, showing a schedule of costs and the TVA against the numerous items of work. You may will need professional support in preparing this schedule which Must relate to the ‘survey’ you had carried out when you bought the Home. If you accept this devis then you Really should sign a second copy with the builder which then becomes a fixed price contract if work is started within 3 months.


Don\’t forget, some alterations to the Home will need planning consent.


Respect the local traditions. If you paint your Home pink when all the other people around you are white then expect trouble! Lastly, make typical visits (if you’re not ‘camping out’ at the residence!) to Make sure that the building is going to plan. Your architect or Maitre d’Oeuvre Will need to be present to explain progress.


At the acquire stage insist on a clause in the compromis de vente to the effect that the get is subject to successfully obtaining all needed permis de construire and certificate d’urbanisme for the proposed alterations to facades and usages respectively.
The benefit and satisfaction of renovating a house is that you finish with a House that pleases you due to the fact your ideas and designs have gone into it. It hasn’t cost Far more than you can afford since you have controlled the expenditure. If you don\’t over specify i.e. don\’t go for gold-plated taps and William Morris wallpapers (unless you require to, of course) – you will finish with a house with a higher re-sale value in comparison to the funds you will have put into the project.


The main disadvantages are that the work to your House may take some months to complete and you will have to patiently wait until you can use it. You will also have to commit a fair quantity of time and attention during the project. It is for you to choose.


Having left the rat race of London after 15 years, I now live in Paradise. The Aude, Languedoc has every thing a home owner in the Languedoc would love. I have a Residence and Gite Maintenance corporation as well as General Building services.


Look at http://www.bize-knees.com for Far more data


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Posted by admin at 2:44 am Tagged with: , , , , ,

Renovating and Maintenance of a Home in France

Uncategorized Comments Off
Jan 032011

Click Here for Renovating and Maintenance of a Home in France

Usually expectations are high when 1st looking for a House in France, but after visits to chosen areas have been made and you have looked at innumerable properties with inadequate facilities, your perspective changes.


A good number of the older stone houses on the market are in will need of work to put them in terrific order having either been left empty for years or just Usually neglected. Lots of persons who contemplate purchasing a house in France have already considered undertaking a restoration project to some degree. There is obviously a danger in purchasing residence in a run-down condition but there are benefits if you follow the rules.


Study and groundwork


Study and groundwork in the beginning will pay dividends later. Make contact not only with agents but also with architects, builders and even Geometres or Expertises (Surveyors) if essential to get as a lot details as feasible prior to your visit. Follow some basic and maybe blindingly obvious ‘ground rules:


0. Fix your spending budget and do not take on anything that will obviously pass your limits.


0. Don’t obtain on impulse; it is greater to come back and take an additional lengthy look.


0. Take notes and photographs as a reminder; one hour processing exists in France too!


0. Ask to see for your self that there is a supply of electricity and that this supply is adequate.


0. Check the condition, if any, of the fosse septique (septic tank). Ought to a new one be required, is it achievable to install one successfully.


0. Make sure that there is a ‘town’ (mains) water supply.


0. Have a copy of the ‘cadastre’ (land registry) plan for reference.


0. Check that the roof is in fantastic condition, the ridgeline is straight and roof timbers (the charpente) are sound.


0. Constantly Make certain that there are no main repairs essential to the Home which are obvious but which you are told are ‘mere trifles’ – structural repairs are just as high priced in France as anywhere.


0. If in doubt – instruct an Expertises – a French Surveyor, who can advise you on the condition of your prospective House as well as how a lot it will cost to put correct. See the section on Surveying in France.


0. Seek local guidance. A excellent deal of info can be obtained from ‘the locals’.
Local Tradesmen


If there is some work to do, no matter how a lot or how small, if you are employing a builder rather than performing the work your self, try to use local tradesmen if achievable and Usually Make certain that the builder you use is correctly registered in France. Any competent architect or builder can see main defects in buildings and warn you. Additional vital, they can Frequently envisage the most effective way to restructure a building when all you are looking at is a ruin.


Make sure that if you will need the services of an architect and/or builder that they are registered. You have no recourse in French law if you use somebody who is undeclared or works clandestinely. In France all traders Should have a SIRET NO and you can verify the trader’s registration by utilizing the MINITEL 3617 code SIRENE. Draw up plans and written specifications for work to be undertaken by a builder and purchase estimates/quotations prior to commencing work. Usually ask for the following:


0. The Siret number. This is issued by the Chamber of Commerce and signifies TVA (VAT) registration.


0. Decenel Insurance. This is a kind of insurance bonding, which offers the builder’s client, a guarantee of workmanship for up to 10 years depending on the work carried out.


0. Responsabilité Civile. This is third party insurance that gives cover in case the builder accidentally causes damage to the Home throughout the course of renovation works.


Building Work


It is critical to maintain every single single receipt for building work carried out on a house so that these prices can be set against the perceived ‘gain’ on the resale of the home for French Capital Gains Tax. All receipts from materials and labour Really should also be kept in order to prove that TVA has been paid on the building works.


If you are having work carried out on a house, then it is required that you Need to arrange to have some thing known as Dommage et Ouvrage Assurance. This is in addition to buildings insurance and covers you against the builder or one of his men having an accident on your home. It will also assist you to claim against poor workmanship.


Constantly purchase a devis (estimate) for any work that you intend to have carried out to your residence. This Need to be very detailed, showing a schedule of costs and the TVA against the a variety of items of work. You may require professional support in preparing this schedule which Must relate to the ‘survey’ you had carried out when you bought the Home. If you accept this devis then you Need to sign a second copy with the builder which then becomes a fixed price contract if work is started within 3 months.


Do not forget, some alterations to the Home will require planning consent.


Respect the local traditions. If you paint your Home pink when all the other people around you are white then expect trouble! Lastly, make normal visits (if you’re not ‘camping out’ at the home!) to Make sure that the building is going to plan. Your architect or Maitre d’Oeuvre Will need to be present to explain progress.


At the obtain stage insist on a clause in the compromis de vente to the effect that the get is subject to successfully obtaining all needed permis de construire and certificate d’urbanisme for the proposed alterations to facades and usages respectively.
The benefit and satisfaction of renovating a home is that you finish with a House that pleases you for the reason that your ideas and designs have gone into it. It hasn’t cost Extra than you can afford mainly because you have controlled the expenditure. If you don’t over specify i.e. do not go for gold-plated taps and William Morris wallpapers (unless you will need to, of course) – you will finish with a home with a higher re-sale value in comparison to the cash you will have put into the project.


The main disadvantages are that the work to your House may take some months to complete and you will have to patiently wait until you can use it. You will also have to commit a fair quantity of time and attention during the project. It is for you to determine.


Having left the rat race of London after 15 years, I now live in Paradise. The Aude, Languedoc has every thing a home owner in the Languedoc would love. I have a Home and Gite Maintenance firm as well as General Building services.


Look at http://www.bize-knees.com for Far more info


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