TVA going up to 7%

I heard a rumour that TVA on renovation would be going up from 5.5% to 7%? Anyone heard anything about this?

Yes this is correct, on 7th November the French government announced that as part of its austerity package it would be increasing the 5,5% rate of TVA on renovation work for what is considered "home improvement" works (rather than the 19,6% for major works or new build) to 7%. We understand the date for this to take effect is 1st January 2012, to be confirmed.

This does not affect any bills already paid, but from the implementation date any artisan who has quoted you a price with 5,5% will have to bill at 7% even if you signed a devis for 5,5%.

(PS this also is the case for those meals which are currently billed at 5,5% in restaurants too.)

Sean Rawnsley, Architecte Sud, Vaour