The amount of TVA (value added tax) payable on building work is 19.6 percent for all new build and are reduced rate of 5.5 percent for renovations. Generally creating new space, does not benefit from the reduced rate of 5.5 percent, renovating existing habitable space does. 

• Example: An existing derelict house if renovated would benefit from a reduced rate of TVA, if the house was extended into the barn next door or had a new extension built, then these "new" areas of habitation would have TVA chargeable at the normal 19.6 percent rate and when the invoices were presented by the artisans all the work on the house would have TVA at 5.5 percent and all the new work would have TVA at 19.6 percent
• There is no reduced rate of TVA on professional fees even though the project itself may benefit

TVA on new build 

The amount of TVA (value added tax) payable on building work is 19.6 percent for all new build. When an existing non-habitable building has been granted change of use to habitation (for example an agricultural barn being converted into a habitation) this is also classed as new build (it is a new habitation) TVA payable is also 19.6 percent.

Reduced rate of TVA on building work

Renovation work on an existing habitation has a reduced rate of TVA of 5.5 percent, it is only when you are restoring an existing habitation that you benefit from the reduced rate of TVA. 

Signing a reduced rate 5.5 percent TVA attestation

Most artisans will request that you sign a reduced rate 5.5 percent TVA attestation when you sign a quotation (devis). This is a declaration by you that the reduced rate of TVA applies to your project, should it transpire that all your project does not qualify for the reduced rate of TVA then the attestation exempts the artisan from paying the additional TVA due and makes you liable. 

For a definitive answer on whether a project will benefit from the reduced rate of TVA, visit the local tax office (Hôtel des Impots) for confirmation.