Assigning an off-plan sale (VEFA) contract before delivery of the building raises delicate VAT questions: characterisation of the transaction, applicable rate, treatment of the VAT already paid on stage payments, and the rate applicable to subsequent stage payments. These questions become sensitive when the contract benefits from a reduced rate, as in the case of intermediate rental housing (10%, article 279-0 bis A of the French Tax Code): the advance tax ruling BOI-RES-TVA-000064, updated on 8 July 2026, now secures the transfer and puts an end to the debate over a possible 20% rate. The firm advises assignors, assignees and developers on structuring these transfers.
Under an off-plan sale, the purchaser becomes the owner of the land and of the constructions as they are built. A purchaser who assigns its position before completion therefore does not transfer a mere contractual right: it transfers a building under construction, together with the rights and obligations attached to the contract.
The entire tax difficulty lies in the characterisation of this intermediate transfer: is it the sale of an unfinished building, or a transaction forming part of the continuity of the supply of a new building? This characterisation determines the VAT rate applicable to the assignment, the treatment of the VAT paid by the assignor on prior stage payments, and the rate applicable to the subsequent stage payments invoiced by the developer to the assignee.
The stakes are highest when the contract benefits from a conditional reduced rate, as in intermediate rental housing: a recharacterisation could have shifted the transaction to the standard 20% rate, even though the economics of the programme were built on 10%. This is precisely the point secured by the updated doctrine of 8 July 2026.
The firm deliberately takes on a limited number of engagements in order to guarantee the direct involvement of its partners on each matter, and systematically assesses the relevance of its involvement before any engagement.
The assignment of a VEFA contract before completion entails the transfer of the ownership acquired as construction progresses.
The ruling BOI-RES-TVA-000064, updated together with the LLI BOFiP, secures the transfer at the reduced rate.
An earlier version of the ruling had weakened market practice by adopting an unfavourable reading.
Securing the rate is a matter of preparing the transfer.
The firm advises on transfers of VEFA contracts at every stage: audit of the assignor's VAT position, verification of the assignee's eligibility (notably for intermediate rental housing), structuring of the deed of assignment, coordination with the developer and the notary, and defence in the event the rate is challenged. The analysis is coordinated with the ordinary rules of real-estate VAT and, where relevant, with the other preferential regimes applicable to the programme.
Yes. A purchaser under a VEFA may assign its position before delivery: the assignee takes over the rights and obligations under the contract and continues paying the stage payments. For tax purposes, the transaction constitutes a transfer of a building under construction, and its characterisation determines the applicable VAT treatment. The preparation of the deed and coordination with the developer are decisive.
Since the update of the ruling BOI-RES-TVA-000064 on 8 July 2026, the 10% reduced rate of article 279-0 bis A of the French Tax Code is preserved where the assignee satisfies the conditions of the intermediate rental housing scheme. Stage payments falling due after the transfer are invoiced by the developer directly at the reduced rate.
No. Within the framework secured by the updated ruling, the assignor retains the deduction of the reduced-rate VAT paid to the developer on stage payments made before the transfer. The precise treatment nevertheless depends on the assignor's VAT position: a prior review of that position is recommended.
Because an earlier version of the ruling characterised the assignment as a sale of an unfinished building, a regime to which the reduced rate for intermediate rental housing did not attach: the assignment was then exposed to the standard 20% rate, at odds with the economics of the programmes. The version of 8 July 2026 adopts the favourable solution and closes this debate for transactions falling within its scope.
Its own eligibility for the scheme: status as a legal entity, location of the building in an eligible zone, compliance with the social-mix condition, and its ability to enter into and honour the intermediate rental commitment (main residence, rent and income ceilings). A subsequent breach exposes the assignee to additional VAT under the scheme's tapering scale.
The characterisation issue exists for any assignment of a VEFA in progress, but the rate issue is specific to contracts benefiting from a conditional reduced rate (intermediate housing, social housing sector). For a VEFA at the standard rate, the analysis focuses mainly on whether the assignment is subject to VAT, the taxable base and transfer duties. Each configuration warrants a specific review.
The assignment of a VEFA is analysed at the crossroads of the ordinary rules of real-estate VAT and the preferential regimes.
The consolidated doctrine on intermediate rental housing: 2026 Finance Act social-mix requirement, dismemberment of ownership, VEFA, assignment and vacancy.
Voir la page PracticeThe general framework: supplies of buildings, elections, rights to deduct and special regimes.
Voir la page GuideThe guide to real-estate transactions from a VAT standpoint: new, existing, commitments and elections.
Voir la page New buildingThe concept of a new building and the regime for works: the dividing line that determines the rate and the regime.
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Written by
Me François Ouairy, avocat associé en charge du bureau de Paris, expert en fiscalité immobilière, fiducie et fiscalité financière.
© BENSAID Avocats, The information on this site does not constitute legal advice.
