Further to the post below regarding the new French Property VAT rules with effect as of 11.3.2010, we have prepared the table below to make sense of the rule change. The table applies to a non VAT registered Vendor selling French property or land.
Where Vendor is not registered for French VAT:
| Type of land | where Purchaser is VAT registered | where Purchaser is not VAT registered |
| Non Building Land (Terrain NAB) | Outside the scope of VAT regs Purchase tax applies at 5.09% Exceptions: art 1594-0 G: agreement to build = no purchase tax; art 1115 agreement to sell on = 0.715% purchase tax) | Outside the scope of VAT regs Purchase tax applies at 5.09% |
| Building Land (TAB) | Outside the scope of VAT regs Purchase tax applies at 5.09% Exceptions: art 1594-0 G: agreement to build = no purchase tax; art 1115 agreement to sell on = 0.715% purchase tax) | Outside the scope of VAT regs Purchase tax applies at 5.09% |
| New property | If the vendor had previously purchased as a building to construct, then VAT is charged on the whole sale price (257-I-3-b 1) and 0.715% purchase tax applies (art 1594 F) If the vendor had NOT previously purchased as a building to construct (eg it was already built) then it is outside the scope of VAT regs and purchase tax applies at 5.09% (or at 0.715% if an agreement to sell on was in place) | If the vendor had previously purchased as a building to construct, then VAT is charged on the whole sale price (257-I-3-b 1) and 0.715% purchase tax applies (art 1594 F) If the vendor had NOT previously purchased as a building to construct (eg it was already built) then it is outside the scope of VAT regs and purchase tax applies at 5.09% |
| Building other than new property | Outside the scope of VAT regs Purchase tax applies at 5.09% Exceptions: art 1594-0 G: agreement to build = no purchase tax; art 1115 agreement to sell on = 0.715% purchase tax) | Outside the scope of VAT regs Purchase tax applies at 5.09% |
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