The value-added tax (VAT) certificate is an important document that applies to renovation work on homes more than two years old. It applies to customers who give the order for the work to be carried out, as well as to service providers operating in this sector. What is a VAT certificate? How can you benefit from a reduced VAT rate on a renovation project? What's the difference between a simplified VAT certificate and a standard certificate? In this article, you'll find out more about the VAT certificate and how to draw it up according to the conditions of application.

What’s in this article?

• What is the VAT certificate?
  
• Is the VAT certificate mandatory? What is it used for?
  
• What are the conditions for applying reduced VAT rates?
  
• How do you prepare the VAT certificate?
  
• How long should you keep the VAT certificate?
  

What is the VAT certificate?

The VAT certificate is an official document that allows you to apply a reduced rate (5.5%) or an intermediate rate (10%) of VAT on a service provided. In particular, this document applies to construction workers carrying out home renovation work. There are two types of reduced-rate VAT certificates: the “attestation de TVA simplifiée” (simplified VAT certificate) and the “attestation de TVA normale” (normal VAT certificate).

Is the VAT certificate mandatory? What is it used for?

To benefit from a reduced or intermediate VAT rate, the client must prepare and submit a reduced-rate VAT certificate to the supplier when the cost of home renovation work exceeds €300, including VAT. The document proves that the reduced VAT rate of 5.5% or the intermediate rate of 10% applies instead of the normal 20% rate.

You can find out more about the different VAT rates in force in our article on the subject.

What are the conditions for applying reduced VAT rates?

Housing renovation work must meet specific criteria to qualify for reduced VAT rates. First, the work must be done on premises intended for residential use, such as a single-family home, an apartment, a unit in a block of flats, a light dwelling (anchored to a fixed point and subject to council tax), a communal accommodation facility, or staff housing.

Renovation work on a courtyard, garage, or terrace attached to residential premises may also qualify for the reduced or intermediate VAT rate. Additionally, the premises must have been built more than two years before renovation work starts.

Work that goes beyond a simple renovation is not eligible for a reduced or intermediate VAT rate. This type of work is subject to the standard rate of 20%.

Scope of reduced VAT rates

The intermediate VAT rate of 10% applies to work aimed at improving, transforming, fitting out, or maintaining the premises.

The reduced VAT rate of 5.5% applies to renovation and energy improvement work, often for renewable or high-efficiency installations, on premises. You can find a comprehensive list of home renovation work that is eligible for reduced VAT rates on the official French government website.

How do you prepare the VAT certificate?

The form to be filled in depends on the type of renovation. You can download this form from the French government website. As the client, you’ll need to complete and sign the appropriate VAT certificate and give it to your contractor before they invoice you for the service. The document certifies that the service provided meets the relevant conditions and that the renovation work qualifies for one of the reduced VAT rates. Make sure you make two copies (one for each party involved) and keep them in a safe place.

Simplified VAT certificate

The simplified VAT certificate is completed using Form 1301-SD, also known as Cerfa no. 13948-05. It applies to work such as insulation, plumbing, electricity, fireplaces, or equipment that does not affect structural elements.

Normal VAT certificate

For structural work, such as foundations, walls, columns, floors, facades, etc., you need to complete the normal VAT certificate using Form 1300-SD or Cerfa no. 13947-05.

You can find more information on VAT in our articles on VAT calculation and the filing process. You can also simplify your tax compliance by using an advanced tool such as Stripe Tax, which automates your calculations, tax collection, and filing through a single integration.

How long should you keep the VAT certificate?

As a customer, you must keep your reduced VAT certificate until 31 December of the fifth year after the corresponding invoice is issued. The company providing the service must also keep a copy of the certificate in order to include it in its accounts and justify the application of the reduced VAT rate on its invoice.