Benefit from a reduction on the rate of VAT thanks to the installation of a portal in its field, yes it is possible, under certain conditions.
Am I eligible for reduced rate VAT?
Owners, tenants, syndicates of co-owners, free occupants, SCI or usufructuaries can benefit from VAT at 10% (instead of 20%), thanks to the installation of a portal.
To benefit from this VAT reduction, you must live in a house whose construction has been completed for more than two years from the date of the start of the work. This reduction concerns all types of existing residences: individual houses, main residences, apartments and second homes.
Which works are affected by 10% VAT?
According to the details provided by the official bulletin of public finances, three types of work are concerned by the reduction of the VAT rate to 10%.
- The installation of a gate
- Construction work on a fence wall in a garden or on land surrounding a dwelling
- The renovation works of portals or walls of fenced, considered as “urgent works”, because they are used to make a dwelling habitable again or by necessity of maintenance.
The reduction to 10% of the VAT rate also includes:
- Workforce
- The supply of certain equipment
- The raw materials needed to carry out the work
However, only purchases invoiced by a professional company, and installation work carried out by a professional, are eligible at the rate of 10%. It is therefore always advisable to request an invoice even for the purchase of the portal itself. Otherwise, your purchases will be subject to the standard rate of 20%.
What about administrative procedures?
To benefit from the reduced rate of 10%, you must complete a special "simplified" certificate, which must then be given to the company in charge of the work, before the site begins, or at the latest on receipt of the bill.
All invoices related to the carrying out of installation or renovation work on a gate must be kept until December 31 of the 5nd year, following receipt. These documents, accompanied by a copy of the certificate, allow you to justify your rights at a rate of 10%, in the event that the tax administration comes to make a claim. Otherwise, you will be required to pay the difference in VAT between the 20% rate and the 10% rate.
In which area does the reduced rate of VAT at 10% extend?
All exterior work related to premises for residential use completed for more than 2 years also entitles the holder to reduced VAT rates of 10%. This concerns the construction or renovation of terraces, balconies, verandas, loggias, uncovered parking spaces or building yards. Waterproofing or insulation work on the framework or envelope of a veranda, the installation or repair of the covering, the replacement of existing closures, are also concerned in the same way as the installation of a portal.
