Change to 71% tax reduction for Gites ruruax

We have had our gites with gites de france since 2004 and every 5 years they come and give us our classification. And we pay them an extortionate amount of money every year.
Then this new “rule” appeared a couple of years ago and lo and behold we had a load of companies (including GdF) getting in contact saying they are the only ones who can give us an “official” classification for the extra tax benefits, for a cost of course. I called our GdF branch and queried this, saying they had already classified us, they said "well, this is different ", ok, what would the classification be? “exactly the same, 200 euros please” wtf! They couldn’t give me an answer as to why the classifications are different, just a single sheet of paper. BTW, the 5 yearly GDF classification costs only 30 Euros!
Anyway, decided to ignore it and we are still getting the higher reduction.:smiley:

Interesting! We are thinking of getting classified, because of the new tax
rule. But as I understand it, GDF is a private organisation, which can
carry out a government classification scheme, as can any other
organisation. We are in the P.O., and an Internet search brings up 2 or 3
such organisations. I dont quite understand the email - the classification
costs 200 euro for 5 years (?), but the last sentence says 30yrs - is that
per year, or for a renewal? Have you got any advice about how to “do” the
house for the classification?

Thought it said 30 Euros. That is for the 5 yearly GDF classification. They wanted another 200 euros to do the tax classification! Thieving bastards

If they don’t provide value for money, why do you use them?

I didn’t say anything about value for money. They charge a lot of money annually, but we get a fair number of bookings through them. They are only trying to rip us off over the extra classification for the higher tax reduction

Might be an idea to get in contact with your tax office and find out what
they want. I assumed, if you are classified, you are classified.

You keep sniping about the cost but it sounds to me as though it is a justifiable business expense. Speculate to accumulate and all that.

I said it was extortionate (once) which it is compared to other charging rental organisations, not sniping about it! Of course it is a justifiable expense, that’s why I pay it. My point was they were trying to charge twice for the same thing, one being very much more expensive than the other.

Extortionate, a lot of money and thieving bastards. It didn’t sound as though you were happy.

GdF - absolute robbers! I used to use them but decided to cut ties a couple of years ago. The benefits of the lower tax threshold are far outweighed by the costs of affiliation and classification. I did a simple calculation adding up the classification, membership, and commission costs with GdF and they equated to around 30% of my total revenue. I am much better off with the higher 50% tax threshold and no other associated costs. Added to that my guests benefit from the lowest Taxe de Séjour rate - it’s barking mad that TdS rates increase with star / epi classifications.
Dump GdF - loads of other sales channels to choose from for a fraction of the cost.

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hi Simon, do you know if the new 50% abbattement applies to Chambres d’hotes as well as gîtes? And I’ve also been told, that as from Jan 2017, all LMNP must register with CdC, even when income is less than 23000 euros and 50% of total income. I would appreciate clarification to whether this is the case or not? Many thanks.

Hi Joanne - sorry but I’m not sure what you mean by ‘the new 50% abbattement’? Also , I’m not your guy for legislation around CdH’s I’m afraid - but someone will pop along! :grin:

This relates to Chambre d’Hôtes and was verified as of 2 January 2017 and makes interesting reading

https://www.service-public.fr/professionnels-entreprises/vosdroits/F31521

Hi, Joanne,
Its confusing at the moment, but have a look at this :
http://droit-finances.commentcamarche.net/contents/1539-location-meublee-non-professionnelle-lmnp-regime-fiscal.
Theres plenty of stuff on the net if you put in things like location
meublee, classification meubles de tourisme, etc . “Gite” as in gite ruraux
are different from “chambres d’hotes” and "meubles de tourisme "(what we
would call a gite). Also important is whether its your residence principal,
which you rent out for 4 months max per year. Let me know if you find
anything which clarifies things. I suspect you will have to read the laws
themselves.

Peter

Hi Peter, yes I have seen that link, but it may be out of date now as the rules have been updated this month. What I can’t find is if there is an obligation now for those running a small CdH to register with CdC and if the rules changed for those running a small activity with income no more than about 5000 euros, and no more than 50% of total income, to opt not to register?

I’ve spent 2/3 days trawling the web, and read so many articles that I’m now totally confused!

I did see somewhere that if the amount is less than the magic 23000 E , it
would not be necessary to join. Just keep your internet eyes open. I’m sure
if “they” think you should, they will let you know. We went to the local
impot once, because we had not received a tax habitation bill. They said if
you had not received one, you did not have to pay it - they were quite
surprised we even asked!

Peter

Yes the same happened with us. The people at our local impôts are very helpful and I’ve never had a problem there.

Hi, Joanna,
They would be the people to ask, then - at least you wouldnt
be blamed if you got it wrong, and if you overpay, they tend to be very
good at re-imboursement. Let me know please, if you find anything out. We
have a “gite” near Perpignan which could be liable to the reduced forfait,
and the introduction of Siret Nos.

Peter