Question 22951 — value added tax

Summary

Ms. Isabelle Florennes questions the Minister to the Minister of Territorial Cohesion and Relations with Local Authorities, responsible for cities and housing, on the VAT rate applicable to property dismemberment operations in the field of intermediate rental housing. Law No. 2018-1021 of November 23, 2018 on the development of housing, development and digital technology known as the “ELAN law” authorizes offices housing authorities, HLM SAs and other organizations referred to in Articles L. 422-2 and L. 422-3 of the Construction and Housing Code to carry out intermediate rental usufruct operations (ULI) which use the same mechanism as social rental usufruct (ULS). The implementation of temporary property dismemberment operations thus makes it possible to find financing solutions for the construction of rental housing. intermediaries by appealing in particular to private investors and more particularly to individual savers by allowing them to acquire bare ownership of housing. However, this system concerning intermediate rental usufruct (ULI) remains inoperative to date due to uncertainty over the conditions of implementation of the 10% VAT rate provided for in article 279 0 bis A of the CGI. Article 279 0 bis A of the code General of Taxes provides that: "The value added tax is collected at the reduced rate of 10% with regard to deliveries of new housing and housing, resulting from the transformation of premises for office use, considered as new within the meaning of 2° of 2 of I of article 257, or to organizations mentioned in 4° of 1 of article 207 or subject to control, within the meaning of III of article L. 430-1 of the code of commerce, of society mentioned in Article L. 313-20 of the Construction and Housing Code, or to legal entities whose capital is held entirely by persons liable for corporate tax or public administrative establishments, which they intend for rental for use as a main residence within the framework of a construction operation having been the subject of prior approval between the owner or manager of the housing and the State representative in the department, which specifies the framework of each operation and concerns compliance with the conditions provided for in a to c. For the application of the first paragraph, the housing must: a) Be located on land located, on the date of signature of the approval, on the territory of the municipalities classified, by order of the ministers responsible for the budget and housing, in geographical areas characterized by a significant imbalance between supply and demand for housing leading to difficulties in accessing housing in the existing rental stock, mentioned in IV of article 199 novovicies; b) Be integrated into a real estate complex comprising at least 25% of the surface area of ​​housing mentioned in 2 to 6, 8 and 10 of I of Article 278 sexies, except in municipalities already having more than 35% of social rental housing, within the meaning of article L. 302-5 of the construction and housing code, and in districts subject to an agreement provided for in article 10-3 of law no. 2003-710 of August 1, 2003 on orientation and programming for the city and urban renovation; c) Be intended to be rented to natural persons whose resources on the date of conclusion of the lease do not exceed the ceilings set by the decree provided for in the first paragraph of III of article 199 novovicies. The monthly rent for these accommodations does not exceed the ceilings referred to in the first or, where applicable, the second paragraph of the same III”. In the event of dismemberment of ownership, operators would like to have confirmation that the conditions set for the transfer of usufruct and bare ownership to benefit from the VAT rate of 10% are assessed at the level of the usufructuary alone, who is the person who has the disposal of the building, who will pass an approval with the State representative, and who will choose the tenants. In other words, as long as the building itself benefits from this rate of 10% and the usufructuary complies with the conditions laid down by article 279-0 bis A of the CGI (it must in particular be an HLM organization or a legal entity whose capital is held by a legal entity subject to corporate tax), the bare owner, whether a legal entity or a natural person, will then automatically benefit from the rate of 10% on the acquisition of bare ownership from the developer. It therefore asks the Government to please clarify, if not confirm, the VAT rate applicable to this type of operation. This information is essential because it would allow operators to continue the production of affordable housing, which the territories that are classified as “tense areas” are in great need today.

Machine translation from French. The official text remains authoritative.

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