New VAT and Notaire rates on plots and new builds

France has been forced to bring its VAT rates back in line with European Union requirements, which will particularly impact building plots and new builds built within the last 5 years. This is expected to cause prices of building plots to increase and will also have an effect on Notaire fees and registration taxes on sales of New Builds. There is widespread confusion concerning VAT on new builds sold within 5 years, and much will depend upon whether the buyer and or seller is an individual, a property professional, whether they are VAT registered. The deed of sale determines the relevant date, rather than it being the date of the initial contract (compromis de vente), and under the new rules, the planning authority description of the land will determine whether it is is building land or not, rather that it depending upon the intention of the purchaser. Each case will be determined on its own merits, and should be discussed with a Notaire. Please contact info@frenchlawconsultancy if you require further information.