The four cumulative conditions
| Condition | Content |
|---|---|
| Age | the dwelling has been first occupied at least ten years ago |
| Use | after the works, the property is used exclusively or principally as private housing |
| Recipient | the works are supplied and invoiced to a final consumer |
| Justification | the invoice carries a detailed statement that the conditions are met |
All four must be met. A single missing condition moves the transaction to the full rate.
The age condition is the most argued, and it is covered in the article on the age condition.
What changed in 2022
A change of mechanism that many owners still do not know about. It bears on who must carry out the check.
Previously the client signed a certificate confirming that the conditions of the reduced rate were met, and gave it to the contractor.
Since 1 July 2022 the contractor carries a detailed statement on their invoice, and the client certificate has gone.
The client therefore has nothing further to supply. But they are not discharged.
They remain responsible for the content of the statement. If they do not contest it in writing within the prescribed period while the conditions are not met, they may be liable for the additional tax.
This mechanism and its effects are developed in the article on the invoice statement and its risks. The risks are set out there.
Who bears the risk
That is the question that counts on inspection, and the answer often surprises. It bears on who carries the reassessment.
The professional issues the statement and engages their liability for the accuracy of what they declare, within the limits of what they could know.
The client bears the risk on the elements they control, notably the age of the property and its use, which a contractor cannot verify alone.
The division is therefore not theoretical. A reassessment covers the difference in rate plus interest, which may be a substantial sum several years after the works.
Hence a simple rule: check before the first invoice, not after the inspection.
Works that do not qualify
Three categories fall outside the reduced rate, whatever the age of the property. They concern specific works and equipment.
Works not bearing on the building itself, such as certain external landscaping or detachable equipment.
Works on property not used as private housing after completion, or where professional use predominates.
Transactions under another regime, notably certain extensions and demolition followed by rebuilding, covered in the article on demolition, rebuild and special cases.
Combining with regional support
A useful point, often raised as a question. It concerns mixed works.
The reduced rate combines with regional grants and support. These are two distinct schemes, one federal and fiscal, the other regional and budgetary.
The support itself is another subject, covered in the guide on construction costs per m², which lists the schemes and their conditions.
Watch the timetables, however. Support schemes have their own deadlines, independent of the tax regime, followed in the article on developments to monitor.
A regime in motion
A necessary warning.
Renovation taxation changes frequently, with temporary measures, sector rates and end dates. Some measures are announced for multi-year periods, others expire without extension.
Information verified a year ago is worth nothing. It is the area of this guide where rechecking is most indispensable.
The articles in this branch
The article on the age condition covers how the threshold is calculated. The calculation is explained there.
The article on the invoice statement and its risks covers the justification mechanism. The formal requirements are set out there.
The article on demolition, rebuild and special cases covers neighbouring regimes. The regimes are compared there.
The article on checking eligibility gives a five-question method. The method is given there step by step.
This article reflects the position of the rules at the date of checking and serves professional orientation. It does not constitute tax advice and does not replace consulting the competent administration.