VAT raised from 5.5% to 10% on part of social housing construction

Article 12 of the 2018 Finance Act, inserted by the Senate, creates article 278 sexies-0 A of the General Tax Code. The VAT rate rises from 5.5% to 10% for sales of building land to social housing bodies, deliveries of new social rental housing financed by a state loan or an ANRU grant, and the corresponding self-supplies. The 5.5% rate is kept notably for rent-to-buy schemes, temporary or emergency shelters, establishments for disabled people and social home ownership in priority neighbourhoods. The VAT payment deadline on self-supplies of new buildings is cut to three months after completion.