10% and 5.5% VAT on works in residential premises: the regime and the end of the certificate

Works of improvement, conversion, fitting-out and maintenance on premises used for residential purposes and completed more than two years ago, under article 279-0 bis of the CGI. The rate covers the labour and the raw materials or supplies invoiced by the contractor, excluding the portion corresponding to household or furnishing equipment and to certain major items of equipment whose list is set by ministerial order. Cleaning and landscaping of green spaces remain subject to the standard rate.

Energy-renovation services carried out in residential premises completed at least two years ago, under the conditions of article 278-0 bis A of the CGI: supply, installation, adaptation or maintenance of materials, equipment, appliances or systems designed to save energy or use renewable energy, through improved thermal insulation, heating and ventilation or domestic hot-water production, subject to the performance conditions specified by ministerial order. The supply and installation of boilers capable of using fossil fuels are excluded from the reduced rates by the Finance Act for 2025, while the maintenance and repair of such equipment remain governed by their own rules.

No. The Finance Act for 2025 (art. 32) abolished, as from 1 March 2025, the certificate that the client had to hand over to the contractor before the works began. It is replaced by a statement entered on the quote or the invoice, through which the client certifies that the conditions for applying the reduced rate are met: premises used for residential purposes, completion more than two years ago, nature of the works and absence of production of a new building. The BOFiP guidance published following the reform sets out the practical arrangements.

The regime follows the logic of the former certificate: where the inaccuracy of the statement is attributable to the client, the client is jointly and severally liable for the additional tax resulting from the difference between the reduced rate applied and the standard rate. The contractor, for its part, must keep the quote or the invoice bearing the statement in support of its accounts and remains responsible for the correct calculation of the tax on the basis of the information available to it. The drafting of the statement and the contractual allocation of the risk deserve genuine attention on significant projects.

Where the works, over a two-year period, contribute to the production of a new building within the meaning of article 257 of the CGI: renewal of the majority of the foundations, of the majority of the elements other than foundations determining the strength and rigidity of the structure, of the majority of the substance of the facades other than resurfacing, or of all the second-fix elements in the proportions set by the statute. The reduced rates are also set aside where the works increase the floor area of the existing premises by more than 10% or involve raising the building. All the works then fall under the standard 20% rate.

Yes. Articles 279-0 bis and 278-0 bis A of the CGI cover premises used for residential purposes completed more than two years ago (at least two years for the 5.5% rate), without distinguishing according to whether the premises are the occupier's main or secondary residence, or according to the client's capacity: an owner-occupier, a landlord, a tenant or a co-ownership association may all benefit. By contrast, premises used for professional or mixed purposes call for an analysis of the actual use of the areas concerned by the works.

The tax authorities claim the additional VAT between the rate applied and the rate due, together with late-payment interest and, where applicable, penalties. Who owes that additional tax depends on the origin of the error: the contractor in principle, the client where the inaccuracy of the certified statement is attributable to it. The defence rests on the documentation of the project: quotes and invoices, certified statement, description of the works, technical evidence establishing that the new-building criteria are not met. A prior review of the file is decisive before any response to the tax authorities.