Question 11870 — value added tax

Summary

Mr. Ian Boucard draws the attention of the Minister of the Economy and Finance to the questioning of the reduced rate VAT for energy renovation work in buildings. Indeed, VAT at the reduced rate of 5.5% is currently applied for energy work on residential premises completed more than two years ago. This reduced VAT rate allows households, particularly the most modest, to be able to renovate housing that consumes a lot of energy. Questioning this rate will lead to an immediate increase in work invoices. Reduced VAT is therefore not financial aid but rather a means of encouraging people to move to less energy-intensive housing. In 2017, around 81,000 homes were energy renovated and this is largely due to this reduced VAT rate. In addition, this increase will also be penalizing for small construction companies which are already experiencing a difficult situation. In fact, an increase will lead to a drop in orders for the latter and consequently the possible layoff of 30,000 employees in this sector. Furthermore, the increase in VAT will encourage certain households to resort to illegal work, which is less expensive but dangerous and without any real guarantee of effectiveness. There will therefore be a loss for businesses but also for the State which will not collect any VAT on this work. However, after the Government's announcements in favor of the fight against greenhouse gas emissions from certain buildings, revising upward the VAT on energy renovation would be nonsense since it would dissuade owners from carrying out the necessary work. This is why he asks how the Government wishes to maintain the objective of renovation of 150,000 “thermal strainers” per year, in order to combat excessive energy consumption, while not penalizing, once again, the purchasing power of the most modest households.

Machine translation from French. The official text remains authoritative.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

No documents linked.

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.