The periods required
Three regimes, with different periods.
For value added tax, use as a main residence must be maintained for a period of two years, to obtain the full tax benefit.
For the tax credit on acquisition duties, personal occupation must last an uninterrupted period of at least two years, having begun within two or four years depending on the nature of the property.
For support administered by the responsible ministry, periods vary by scheme, some carrying longer commitments.
These periods do not coincide exactly, meaning a project may be released from one commitment while still bound by another.
The starting point that surprises
This is the most useful point in this article. The commitment periods do not coincide between schemes.
For value added tax, the two-year period starts to run from 1 January of the year following the one in which the eligible works were completed.
It is therefore neither the date of approval, nor that of the final invoice, nor that of moving in.
Works completed early in a year therefore entail an effective commitment period approaching three years, since the clock only starts on the following 1 January.
For the tax credit, the logic differs: the starting point of the occupation period is actual occupation, itself subject to a limit running from the deed.
Comparing these two mechanisms without distinguishing them leads to programming errors of several months.
The declaration periods
They differ too, and that difference is a trap. The starting points are not the same from one regime to another.
| Scheme | Period to declare a change |
|---|---|
| Value added tax | one month |
| Tax credit on duties | three months |
| Support from the responsible ministry | according to the nature of the change |
The shortest period is that for value added tax, and it is the most often forgotten, approval being frequently seen as a formality now past.
For support, changes in household composition must be reported promptly, while changes relating to employment wait for the next review of the file.
A single event may therefore trigger several declarations, to different recipients and within different periods.
What constitutes a change
Four situations, to be treated as such even in case of doubt. They constitute changes that must be reported.
Leaving the dwelling, permanently or for an extended period.
Letting, whole or partial.
A change of use, notably devoting part of it to professional purposes.
Disposal of the property, in whatever form.
In case of doubt, declaring costs little and protects. Assessment falls to the administration, and declaring a situation that turns out to be immaterial carries no consequence.
The tracking method
Four points, to put in place at the time of the grant. They organise the tracking of undertakings over time.
Note the expiry dates of each commitment, calculated according to the starting point specific to each scheme.
Note the declaration periods, distinct by scheme.
Keep the supporting documents, including after the commitments expire.
Check before any decision affecting the dwelling, notably letting or selling.
What this means for a professional
Four rules.
Calculate deadlines scheme by scheme, without transposing periods from one to another.
Flag the deferred starting point for value added tax, regularly misunderstood.
Recommend declaring in case of doubt, an unnecessary declaration costing nothing.
Give the client a dated summary of the commitments, rather than an oral explanation.
This article reflects the state of the schemes at the date of checking and serves professional orientation. It does not replace tax advice or consultation of the competent administration.