5.5% VAT for affordable home ownership in priority urban policy neighbourhoods
Article 17 of the 2015 Finance Act applies the reduced 5.5% VAT rate to sales and construction work on new homes used as the main residence of households whose income does not exceed the social rental loan (PLS) income ceilings plus 11%, where the homes are located in a priority urban policy neighbourhood covered by a city contract, or entirely within 300 metres of its boundary. Sale or construction prices are capped. It covers projects whose building permit application is filed from 1 January 2015.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
According to the prior assessment quoted in the Senate general report, the revenue loss would be €10m in 2015, €35m in 2016 and €70m in 2017, as homes are delivered.
Official references
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
Joint committee
DĂ©saccord Ă©ventuel
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne