Gites and Chambres d hotes may soon be paying 7% TVA

Employed & Self Employed Gite & Chambre d'hote Owners
1

Last night my thoughts were turning from the joys of


christmas to the woes of the list of repairs, purchases and modifications


needed to Clos des Saveurs before we open in Spring.


My winter is not a feast of dinner parties and shopping sprees...but


Four cold months of planning and searching for new directions.


Of course this story is not unique.


Like all of you I am a survivor in a place where I wanted to be


for so long. Having spent years in London suffercated by an addiction


called "expecation" and working like crazy I eventually arrived here in Nov


2007.
So much has happened ...far too much to reach this page.


My village...like many enjoys the company and flow of euros which the tourists


bring with them. It helps the taxi services, the cafes, the car hire companies


and even the airport at Bergerac. Many travelers at Bergearc airport are


Gite and B and B owners who came here to find the way of using their


property to make a living or help provide a living.


Our area alone has 2 major wedding venue chateaux which make a generous


contribution to tourism....ADDING to the much needed attention to St Emilion


which needs to irradicate it's 6 million euro debt.


So the scene is set for you to see.


Along comes a new tax for us Gite/ B AND B owners to pay.


On top of massive utility bills and all the taxes comes the 7% tva.


It will be a 7% payable .....even for those who take a few euros;


What will the outcome be.....the closure of many more small buisness's


a flooded property market and a very lonely airport at Bergerac.....and


beyond...of course.


















that

2

It is not cheaper to live in France

But ....BUT is a long subject

Maybe we could talk about your elderflower...

I AM IN THE SAME REGION

MAYBE WE should chat

3

oh boy! we have a house in Eymet...we decided to sell up having been in France for a couple of years...I cant see me ever being employed in France...so lucky for me I have been working in the UK and living in our UK flat whilst my husband has tried to sell the house...so far without luck. After a year of this decided I would return and try to find some sort of business...am interested in food production...make our own elderflower in pretty large quantities...and veggie food...we were about to look at advertising our ground floor bedroom suite with its own bathroom....so only one room rented out....and Ive now read about TVA......we already let out a flat we own in the Languedoc.....and pay taxes on that...our barn in the Dordogne has no rubbish collection we have to take it all to a dump....we have a septic tank..so no main sewerage...no street lights....nothing really...yet we pay nearer 3k on property tax...despite there being only 2 of us in a 4 bed barn....crazy....whoever said it was cheaper to live in France....?

4

This little piece doesn't add any further insight, but does summarise nicely. http://www.startbusinessinfrance.com/index.php/news/general/gites-chambres-dhotes-to-be-liable-to-7-vat

5

No no not droping our prices...NO WAY;
WE work too hard to do that.

Always looking for new ideas...NEW WAYS...and usually find them.

I like what you wrote.

6

Hello Barbara, I've just read your notes, and I really do have to agree, although I know nothing about running a Gite or B and B. This TVA tax ( I gather ) is clearly another back door tax which I assume will have to be absorbed, or passed on. I guess your visitors are, in the main, not in a postion to claim this back. How frustrating for you and all the other traders, whom, as you say, put their hearts and souls into such ventures. What is bitter sweet here, is the fact that, I like many, have seen a gradual evolution from 'hole in the floor' WCs, to current day luxuries like hot water, reliable electricity, and a phone system that works. Now everyone's a critic, and demanding the best, but not happy to pay for it. With many in the business lacking in the attention to detail, customer care elements, that we take for granted. I must be true to say that the ex-pat vision of improving a property, or creating a business from nothing must uplift the property values and help embellish tourism. I wouldn't drop my prices nor cut corners, quality will win through, I've no doubt.

7

Here here Barbara my tiny income is as squeezed as it can get!

8

Yes Jon I am aware of the fact that TVA is reclaimable on certain items.

Ingredients no...A PORTION of the gas, electicity etc etc as there is a portion of these items allocated for self consumption with a b and b...AND many repairs are seen, as improvements for the benefit of your property...You/the tax payer being the beneficiary. You can not set them as an expense.

However in some cases...AS IN OURS the property was purchased with the sile idea of operating a large, stately looking property which would be inviting for tourists and the swimming pool for instance would be only for the clients use.

As I said earlier the eater 7% ON low income will be more than difficult; Apart from anything the extra calculations will MEAN more complex accounting which means that

the accountants fee will be greater.

Let me tell you that running a B anB is not like living the life of the

Jamie Oliver in carpet slippers. IT IS challenging and since I sold my

buisness and home in London everything which was tough has got tougher

in London and here in France. It seems to me that with each day has something new to de-range and make good.But do I want to give up? NO WAY.

How far you you squeeze a tiny income....

9

If for instance you are taking a very small amount in revenue...your reclailable TVA will be tiny.

Another 7% on top of cotistations, tax etc is not managable for many.

10

Done :)

And fingers crossed that common sense prevails at some point and the state don't start whacking 7% on top of already rising costs.

11

CAN YOU do that please as I am hopeless at getting things in the right

places.

Thanks

Barbara

12

There seems to be a fair amount of confusion already surrounding this ruling, not least form the ministers at the centre of it all. My gut feeling is that there will be a threshold which hopefully many can duck underneath, which Barbara alluded to.

It may be a good idea to post this in the gîte owners group too as some may miss it over here?

13

SURELY not I pay 2.000 EUROS PER year for tax fronicere and in winter

we are only 2 IN our large property!!!!!!

14

No VAT kicks in if your turnover is currently over 80,000 (I wish!). This appears to be suggesting that all will be dealt with the same at 7% from the first euro.................................this will be the nail in our coffin. I suspect it might be (hope so) a toe in the water statement to see what outrage comes back and then some on lower annual takes might be excluded, but it is very worrying and low key enough to suggest that it is trying to be brought in without too much notice. Thanks for sharing it will keep a very close eye on this.

Additionally we are currently going to have to pay for our rubbish collection by weight as from Jan 1st as well. We already had visions of going through the weekly rubbish to recycle properly, as people often don't bother when on holiday. Anyone else charged for rubbish by weight?

15

I have just spoken to my accountant who says

32.000 euros is the base.

But this will, of course affect the tourism industry which is vital....VITAL

16

Here's the detail but doesn't it mean you won't fall under it unless you earn in excess of 80,000 pa? http://www.leparisien.fr/economie/la-tva-a-7-s-appliquera-a-toutes-les-formes-de-restauration-et-d-hebergement-24-11-2011-1736996.php

17

It is on page 4 of the Connexion, the Minister for Tourism, Frederic Lefebvre said that the measure, part of the second austerity plan, would be brought in on January 1 for every sector of the industry.

There is also a reply from the legal expert of Gites de France, who says tghat he cannot see how the government can bring in a rule like this. The TVA payment levels are there for a good reason: that businesses do not have a big enough revencue (thir words). It would imply a change across the whole of business.

18

We read about it sat in Connexion dec issue

but apparently an article has appeared in Figaro

Please keep meinformed of you findings and what you

feel like doing about the situation.

19

Thanks for coming back couldnt agree more. We manage a dozen or so properties for other people in the Aude and frankly this could drive them out of business. Could you tell us please where you got the info from. Sorry to be a pain but we have googled it and cant trace the source and we would like to go to our owners in order that they might start to bring some form of policital pressure to bear. It is not the first time M Sarkozy has attempted punative measures to do the tourist industry in.

20

Sue this is could have great impact on our industry....and a huge knock on effect.

IT is the wider picture which is most dramatic.

Our village probably survives on the people like us and the clients

who come to stay....The airports, the vineyards will suffer too.

Where are you...BY THE WAY?