Question 31184 — value added tax

Summary

Mr. Pierre Person draws the attention of the Minister Delegate to the Minister of the Economy, Finance and Recovery, responsible for public accounts, to the exceptions for calling into question the benefit of the reduced VAT rate in the context of the acquisition of a property in the form of a sale in the future state of completion (VEFA). When acquiring real estate in the form of a sale in the future state of completion (VEFA), buyers benefit from a reduced VAT rate. If the latter decide to resell their property after less than ten years, they must then repay to the tax administration the differential between the 5.5% VAT from which they benefited on purchase and the base rate, i.e. 20%. The finance law for 2014 set exceptions which make it possible not to call into question the benefit of the reduced VAT rate, including the birth of a child. Before 2014, the law established that the events linked to these exceptions had to take place after the “acquisition” of a property. Since then, the Official Bulletin of Public Finances-Taxes has established that they must intervene after the “delivery” of the said property. Thus, a couple having purchased a home and then wishing to resell it upon the birth of their child would be exempt from the VAT differential if the property had already been delivered, but would be indebted if this was not already the case. However, family difficulties linked to the unsuitability of housing to accommodate a child arise from the moment the child is acquired. As such, it would appear logical that the entry point is the “acquisition” of the good and no longer its “delivery”. Furthermore, the 2014 decision appears to have been taken unilaterally and without justification by the tax administration. Also, he would like to understand for what purposes the Official Bulletin of Public Finances-Taxes modified the conditions of application of the exceptions to the questioning of the benefit of the VAT rate and hopes to see the BOFIP VAT IMM 20-20-20 Chapter 5 Paragraph B modified.

Machine translation from French. The official text remains authoritative.

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