Key Points: VAT on Construction and Renovation Works in France
Three rates apply: 20% standard (new builds, buildings <2 years, works producing a new building, floor area +>10%); 10% intermediate (improvement, transformation, fitting-out, maintenance in dwellings >2 years old; CGI Art. 279-0 bis); 5.5% reduced (energy performance improvement works and indissociably linked works; CGI Art. 278-0 bis A).
The two-year rule is the key threshold: the dwelling must have been completed for more than two years at the date of commencement of works. Completion date = date habitability conditions were met, or date of first occupation, whichever is earlier.
The 10% and 5.5% rates apply only to works performed by a contractor and invoiced directly to the client. Materials purchased directly by the client (not incorporated in the contractor’s invoice) are subject to 20% VAT regardless of the nature of the works.
The client must provide the contractor with a signed, dated attestation before works begin (or at invoicing/completion). Without it — or where it is missing, incomplete, or false — the standard rate of 20% applies to all the works. The client is jointly liable for additional tax if the attestation proves inaccurate.
The 5.5% rate covers energy performance works and indissociably linked works that are indispensable and either preliminary or subsequent to the energy renovation works. The linked works must be in the same room (or affect structural elements directly impacted), invoiced by the same contractor. A complete roof replacement does not qualify at 5.5% (Rép. Carrez AN 4-4-2017 n° 93563).

The Three VAT Rates: A Quick Map

Standard Rate 20%
New builds; buildings <2 years; works producing a new building; floor area +>10%; swimming pools; garden maintenance; standalone demolition
Intermediate Rate (CGI Art. 279-0 bis) 10%
Improvement, transformation, fitting-out, maintenance in dwellings >2 years. Network connections; non-collective sanitation. Requires client attestation.
Reduced Rate (CGI Art. 278-0 bis A) 5.5%
Energy performance improvement works and indissociably linked works. Equipment supplied by contractor for such works. Requires enhanced attestation.
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Overseas Departments: Different Rates

In Guadeloupe, Martinique, and La Réunion, the reduced rate is 2.1% (for both the 10% and 5.5% categories) and the standard rate is 8.5%. The reduced-rate regime for construction works applies in these territories at these lower rates.

Who Benefits and on What Property

The reduced rates are available to all persons who commission the works, regardless of legal status: individual owners, tenants, usufructuaries, free occupants, syndicats de copropriétaires, SCIs, associations. No income ceiling.

The fundamental condition is that the works must be carried out on residential premises completed for more than two years at the date of commencement of the works. Completion date = the date on which habitability conditions were met or first occupation (even partial), whichever comes first.

The rate applies to all residential uses (primary, secondary, vacant, let). Non-residential buildings (offices, shops, hotels) are excluded. Conversion of non-residential to residential qualifies if the building has been completed for more than two years and the transformation does not produce a new building for VAT purposes.

Mixed-Use Buildings, Common Parts, and Dependencies

  • Mixed-use: if >50% of the floor area (excluding dependencies) is residential → reduced rate on all the works; if ≤50% residential → reduced rate only on exclusively residential rooms;
  • Common parts of collective buildings at ≥50% residential (by millièmes): fully at reduced rate;
  • Usual dependencies (garages, cellars, balconies, terraces, loggias): at reduced rate;
  • Adjacent unbuilt areas (private roads, boundary walls, gates): at reduced rate;
  • Sports installations (swimming pools, tennis courts) and garden structures (sheds, greenhouses): standard rate.

Works at the 10% Intermediate Rate (CGI Art. 279-0 bis)

The 10% rate applies to improvement, transformation, fitting-out, and maintenance works of an immovable nature in eligible residential premises. It covers both labour costs and materials and supplies when supplied and invoiced by the contractor. Materials purchased directly by the client without incorporation in the contractor’s invoice remain at 20%.

It also covers:

  • Works for connection to public utility networks (sewerage, water, gas, electricity, telephone, cable);
  • Non-collective sanitation works (installation, compliance, maintenance including septic tank emptying and cleaning);
  • Architect’s fees where they relate to qualifying works and the architect also provides project management.

Simple installation of household appliances, white goods, or furniture does not qualify. Neither do materials bought directly by the client.

Works at the 5.5% Reduced Rate (CGI Art. 278-0 bis A)

The 5.5% rate applies to works for the installation, supply, and maintenance of materials and equipment designed to improve the energy quality of residential dwellings, meeting the minimum technical characteristics and performance criteria set by ministerial order. Qualifying works include:

  • Thermal insulation of roofs, exterior walls, floors, and openings;
  • Installation of high-performance heating systems or hot water production systems;
  • Installation of heat pumps (other than air/air in individual or apartment use, which qualify at 10%);
  • Installation of solar panels, photovoltaic micro-installations, or other renewable energy equipment;
  • Replacement of windows, doors, and other building envelope elements to improve thermal performance.

Indissociably Linked Works at 5.5%

The 5.5% rate also extends to works indissociably linked to the energy performance works, provided three conditions are all met:

  • They relate to the same room as the energy works, or to structural building elements directly affected;
  • They are invoiced by the same contractor;
  • They are indispensable preliminary or subsequent works.

A complete roof replacement and structural timber renovation (other than repositioning elements removed for the energy works) do not qualify at 5.5% (Rép. Carrez: AN 4-4-2017 n° 93563).

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Self-Supplies at 10% and 5.5%

The 10% and 5.5% rates also apply to livraisons à soi-même (self-supply VAT charges) relating to qualifying renovation and energy works (CGI Art. 278-0 B, III, introduced by Finance Act 2022-1726 Art. 56). This ensures the reduced-rate benefit applies consistently whether works are commissioned from a contractor or self-supplied in the accounting sense.

Works Remaining at the 20% Standard Rate

The following works are specifically excluded from both the 10% and 5.5% rates:

  • Works on properties completed less than two years ago;
  • Works contributing to the production of a new building (CGI Art. 257, I-2-2°): majority of foundations, majority of structural resistance elements, majority of façade structure, or renewal of at least two thirds of each secondary structural element;
  • Works producing a floor area increase of more than 10% over two years (unless ≤9 m²);
  • Standalone cleaning works; landscaping and garden maintenance; standalone demolition;
  • Collective heating equipment in multi-unit buildings; new lifts (except disabled-adapted); prefabricated hammam/sauna cabins; fixed air-conditioning and air/air heat pumps; swimming pools; domestic appliances; freestanding furniture.

Equipment at 10%: Reference Table

Where equipment is supplied and invoiced by the contractor in the context of qualifying renovation works, the following categories benefit from the 10% intermediate rate (or 5.5% where they qualify as energy performance equipment):

Category and items 10% 20%
Sanitary and bathroom equipment
Baths, whirlpool baths, shower trays, shower enclosures, walk-in showers, shower screens, washbasins, sinks, bidets, WCs, taps, mixers, showerheads and hoses, cisterns ✓
Heating and hot water production
Individual boilers, oil/gas tanks, heat pumps (non-air/air) in individual house or apartment (>2 years), radiators, convectors, hot water tanks, water heaters, pressure boosters, ventilators, humidifiers/dehumidifiers, extractors, water softeners, central vacuum units, fireplace inserts, filters, burners ✓
Collective heating equipment in multi-unit buildings (boilers, tanks, pumps for shared use) ✕
Fixed air-conditioning units and air/air heat pumps ✕
Openings, closures, and security
Doors (incl. armoured), gates, fences, windows, shutters, external blinds, remote controls for automated doors/shutters, keys supplied with the system, balcony/terrace guard rails, door handles ✓
Smoke detectors, fire safety systems, locks, bolts, window bars, alarms, entry codes, intercoms, video phones ✓
Electrical and fixed miscellaneous equipment
Electrical panels, sockets, switches, dimmers, circuit breakers; fixed TV antennas and cabling; eaves, awnings, gutters, floor grates, drainage channels; chimneys (surround, flue, hood); letterboxes ✓
New escalators and new lifts (except those specifically designed for disabled persons) ✕
Existing lifts/escalators: servicing, renovation, standards compliance; works for new installation (electrical work, painting, local reconfiguration) ✓
Always at standard rate
Domestic appliances (fridges, dishwashers, washing machines, cookers, extractor hoods); audiovisual and telephone equipment; freestanding furniture not built into the structure; mobile heating appliances ✕
Swimming pools (installation, safety equipment, maintenance); tennis courts; garden sheds; greenhouses; prefabricated sauna/hammam cabins ✕

The Attestation Requirement

To benefit from the 10% or 5.5% rate, the client must provide the contractor with a signed, dated attestation before the works begin, or at the latest at the time of invoicing or completion.

Content of the Attestation
  • For the 10% rate: that the property has been completed for more than two years; that it is used for residential purposes; and that the works do not contribute to a superstructure, to the production of a new building, and do not result in the creation of significant additional floor area.
  • For the 5.5% rate: all the above plus a statement that the works relate to the supply, installation, or maintenance of materials and equipment referenced in CGI Art. 200 quater, 1; and (where applicable) that the works are indissociably linked preliminary or subsequent works.
  • Small works dispensation: for repair or maintenance valued at less than €300 TTC, the attestation is not required if the invoice states: name and address of client and property; nature of works; and a statement that the property has been completed for more than two years.

Consequences of Missing or False Attestation

Where no attestation is provided, or where required information is missing, incomplete, or inaccurate, the standard rate of 20% applies to all the works. The client is jointly and severally liable for additional tax where the attestation proves to be inaccurate on their part. Persons who knowingly issue false attestations or invoices are liable to a fiscal penalty equal to the VAT rate applied on the sums unduly mentioned (CGI Art. 1740 A). The client must retain a copy of the attestation and invoices until 31 December of the fifth year following completion.

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Self-Performed Works: No Reduced Rate

The reduced rates of 10% and 5.5% apply only to works performed by a contractor and directly invoiced to the client. A homeowner who carries out their own renovation cannot apply the reduced rate to materials they purchase themselves. A tin of paint bought directly by the client is subject to 20% VAT, even if it would have qualified at 10% had it been included in a contractor’s invoice.

Summary: VAT Rate Checklist Before Commissioning Works
Confirm the building’s age: the reduced rates require the dwelling to have been completed for more than two years at the commencement of the works. For recently completed buildings, or where recent major works may have produced a new building for VAT purposes, verify the date carefully before assuming the 10% rate applies.
Are the works producing a new building? Works that affect the majority of the foundations, majority of the structural elements, majority of the façade, or renew at least two thirds of the secondary structural elements are at 20% regardless of the building’s age. Verify with the architect or contractor before signing.
Provide the attestation before works start: the contractor will typically supply the standard form. Sign it, date it, and ensure the contractor retains it in their accounting records. For energy performance works (5.5%), use the enhanced form that references CGI Art. 200 quater, 1 equipment. Keep your copy until 31 December of the 5th year after completion.
Review the contractor’s invoice: verify that the invoice distinguishes between items at 10%/5.5% and items at 20% (e.g. new collective heating equipment, domestic appliances, swimming pool). A contractor who applies a uniform 10% to all items including standard-rate equipment is exposing the client to a VAT adjustment.
Energy works at 5.5% vs 10%: for energy renovation, confirm whether the specific equipment meets the technical criteria for 5.5%. Note that air/air heat pumps in individual dwellings and apartments qualify at 10% only. Works involving a complete roof replacement do not qualify at 5.5% even if insulation is being installed at the same time.
Questions About VAT on Property Works in France?

Our French law practice advises on the VAT rate applicable to specific renovation and energy works, the attestation requirements, the new-building-production threshold analysis, the interaction with the taxe foncière and revenus fonciers deduction rules, and the position of non-resident property owners commissioning works in France.

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Legal Notice. This article is provided for general information and educational purposes only. It does not constitute legal or tax advice. The 5.5% rate on energy renovation works was subject to redefinition from a new ministerial order (at latest from 1 January 2024 per Finance Act 2022-1726 Art. 65); rules after that date should be verified with current legislation. The rate applicable to specific works depends on the facts and should be confirmed with a tax professional before invoicing. Always consult a qualified French tax adviser before commissioning significant renovation works.