France – Reduced VAT for renovation works – CJEU case PRIMISO and new BOFIP guidelines
On 29 September 2025, the Administrative Court of Cergy Pontoise (SAS PRIMISO, no. 2306229) confirmed the French Tax Authorities’ strict approach to applying reduced VAT rates for renovation works.
During a tax audit, the company’s use of reduced VAT rates was challenged for a straightforward reason: the signed statements confirming that the works qualified for the reduced rate had been completed after the invoices were issued. The company then tried to “correct” the situation by preparing new statements with earlier dates. Both versions were rejected ; the actual signing dates were still later than the invoicing.
The court agreed with the Tax Authorities: a signed statement must always be completed before the invoice is issued ; and, if the statement is invalid, the reduced VAT rate is automatically denied, regardless of the nature of the works. This decision clearly reflects the traditional French approach: documentation takes precedence over substance. A single dating error is enough to lose the reduced VAT rate, along with the resulting reassessments and penalties.
This procedural rigidity is exactly what prompted the legislator to amend the system. Since the 2025 Finance Act, the requirement for a signed statement, long a source of disputes and administrative mistakes, has been abolished.
The updated rules were clarified in the BOFIP of 22 October 2025. The application of the 10% VAT rate for renovation works, and the 5.5% rate for energy efficiency renovation, now relies on a simple statement included on the invoice. The official wording to be used is provided in the BOFIP templates available at the following link: https://bofip.impots.gouv.fr/bofip/14834-PGP.html/identifiant%3DBOI-LETTRE-000280-20251022.
