Reduced 5.5% VAT rate on energy-efficiency improvement works in homes

The 2014 Finance Act created article 278-0 ter of the General Tax Code: energy-efficiency improvement works in homes completed more than two years earlier, and the works inseparably linked to them, are taxed at the reduced 5.5% rate instead of the 10% intermediate rate. It covers the installation and maintenance of materials and equipment eligible for the sustainable development tax credit, subject to performance criteria set by ministerial order. The customer provides a certificate to the contractor.