if you own a flat in Paris and are planning renovation work, the VAT rate on your quote may be 20%, 10% or 5.5%. And on a substantial renovation, understanding why each rate has been applied can make a meaningful difference to the overall budget. For many of my international clients, French VAT is one of the less familiar parts of renovating in Paris. My approach is to make sure the costs presented to them are clear, properly detailed and understood before work begins. Here is what you need to know on a renovation quote.
Key takeaways
20% is the standard VAT rate in mainland France.
10% may apply to eligible improvement, conversion, fitting-out and maintenance work in a dwelling completed more than two years ago.
5.5% may apply to specified energy-renovation work and, under separate rules, to certain qualifying solar photovoltaic installations.
Materials and equipment bought directly by the client are normally charged at 20%; the contractor’s installation service may still qualify for a reduced rate where the relevant conditions are met.
Reduced rates do not apply to certain projects that amount to creating a new building for tax purposes or increase the existing floor area by more than 10%.
Since 1 March 2025, the client must confirm that the work qualifies for a reduced VAT rate through a statement on the quote or invoice. The previous attestations are no longer required.
Since 1 March 2025, the supply and installation of boilers capable of using fossil fuels, including gas or oil, are subject to the standard 20% rate. Maintenance or repair may still qualify for 10% under the relevant conditions.
VAT rates for renovation work in France
The rate depends on the nature of the work, the age and use of the property, and how equipment is supplied and installed. In Paris, the relevant rates are 20%, 10% and, for eligible work, 5.5%. For the reduced rates, the dwelling generally needs to have been completed more than two years before the work begins. The 5.5% rate has additional conditions and applies only to eligible energy-renovation work.
20% : the standard rate; it applies to work that does not qualify for a reduced rate, including certain major works and equipment bought directly by the client. It may also apply when the dwelling has not yet reached the two-year age condition.
10% : eligible improvement, conversion, fitting-out and maintenance work in a dwelling completed more than two years ago.
5.5% : specified energy-renovation work and qualifying equipment, subject to technical conditions. Separate rules also provide for 5.5% VAT on qualifying solar photovoltaic installations of up to 9 kWp.
These rates apply to eligible work carried out in mainland France. Other French territories may have different rates.
The important point is that a renovation does not necessarily have one VAT rate from beginning to end. Different elements of the same project can be treated differently, which is why a quote has to make those distinctions clear. However, where different elements form one economically indivisible supply, specific VAT rules apply and a single rate may have to be used.
When does the 10% VAT rate apply to renovation work?
The 10% VAT rate may apply to improvement, conversion, fitting-out and maintenance work carried out in a residential property completed more than two years ago. The property can be a principal or second residence, and the client may be its owner, tenant or rent-free occupant. In a Paris flat, qualifying work might include parts of an interior renovation such as repainting, replacing floor finishes or fitting a kitchen or bathroom. The precise treatment depends on what is supplied and installed, and on whether the conditions for the reduced rate are met.
Some fitted kitchen, bathroom and storage equipment may qualify for 10% when it is incorporated into the building and specifically adapted and fixed to the property. Household appliances remain subject to the standard rate, including when they are integrated or built into fitted furniture.
A renovation involving extensive changes to the layout or services is not automatically subject to one rate. Each part of the project needs to be assessed according to the applicable VAT rules, and the contractor should identify the appropriate rate clearly on the quote.
When can renovation work qualify for 5.5% VAT?
The 5.5% VAT rate applies to a defined list of energy-efficiency works in residential premises that have been completed for at least two years. The work must involve the installation, adaptation or maintenance of qualifying materials, equipment or systems, and the relevant technical specifications must be met. Eligible categories include certain forms of thermal insulation, renewable-energy heating and hot-water equipment, qualifying ventilation systems, heat distribution insulation and heating controls.
It is worth being precise here: 5.5% is not a general “energy-efficient renovation” rate. The item and its technical characteristics matter. A bathroom or kitchen renovation, for example, does not qualify for 5.5% simply because new fittings are more efficient. A qualifying energy upgrade within the same project may be treated differently from the surrounding renovation work.
There is also a separate 5.5% VAT regime for the supply and installation of qualifying solar photovoltaic equipment of up to 9 kWp in residential properties, applicable since 1 October 2025 and subject to specific technical and environmental criteria.
When does the 20% VAT rate apply?
The 20% standard VAT rate applies when work or equipment does not meet the conditions for a reduced rate. It may apply to:
a dwelling completed less than two years ago;
an extension that increases floor area by more than 10%;
works considered to create a new building for tax purposes.
Since 1 March 2025, it also applies to the supply and installation of boilers capable of using fossil fuels, such as gas or oil boilers. Their maintenance or repair may still qualify for the 10% rate where the conditions are met.
The “new building” test looks at how much of the property’s structure or internal systems the work renews. The reduced rates may be excluded if the work renews more than half of certain structural elements — such as foundations, load-bearing elements or façades — or more than two-thirds of each of the relevant second-fix elements, including floors, external windows and doors, partitions, plumbing and sanitary systems, electrical systems and heating.
This is where the distinction between an interior renovation and a much more substantial transformation becomes particularly important. The value of the project alone does not determine the VAT rate: the nature and extent of the work do. The timing also matters: these tests can take into account work carried out over a two-year period. If a Paris flat is undergoing a substantial renovation in phases, the full scope should be reviewed with the contractor rather than treating each phase in isolation.
Does it make a difference if you buy the materials yourself?
Yes. Materials or equipment bought directly by the client are generally charged at 20% VAT.
This is something I discuss with clients before we decide how particular pieces or materials will be sourced. The contractor’s installation service may still qualify for 10% or 5.5% VAT if the work meets the relevant conditions. When the contractor supplies the items as part of the work, the applicable rate depends on the item and the overall eligibility rules.
This means that sourcing an item yourself is not necessarily the most cost-effective option, even if its purchase price initially looks attractive.
This can matter for visible choices such as lighting, appliances or bathroom fittings, as well as less visible items. Before deciding to source something separately, I look at the complete picture: purchase price, VAT, delivery, installation and how the item fits into the wider project
What I would look for on a contractor’s quote ?
A good renovation quote should allow you to understand what you are paying for without having to decipher it.
Before approving a quote, check that it:
separates the work into clear descriptions;
shows the applicable VAT rate and the relevant amounts clearly;
distinguishes contractor-supplied materials from items you plan to buy directly;
identifies any work claimed at 5.5% and the basis for its eligibility;
includes the client’s statement confirming that the work qualifies for a reduced rate.
If one project combines work subject to different rates, ask the contractor to explain how the items have been classified. VAT rules generally treat separate supplies according to their own regime. However, where elements are so closely linked that they form a single economically indivisible supply, they may have to be treated as one operation. Where that operation contains non-accessory elements subject to different rates, the highest applicable rate applies to the operation.
For me, this is part of good project management. A client should know what has been allowed for, which decisions affect the budget and where a figure comes from before approving it — not discover it once the work is underway.
Frequently asked questions
Does the 10% VAT rate apply to a second home in Paris?
Yes, it may. The reduced rate can apply to eligible work in a principal or second home, provided the property and work meet the conditions, including the requirement that the dwelling has been completed for more than two years.
Does the owner have to live in France to qualify?
No. Living outside France does not, in itself, prevent eligible renovation work from benefiting from a reduced VAT rate.
The published eligibility criteria focus on the residential use and age of the property, the nature of the work and how it is supplied. The reduced rates are not limited to owners occupying their main residence: depending on the circumstances, the client may be an owner, tenant, rent-free occupant or other qualifying recipient of the work.
This is particularly relevant to international owners renovating a Paris pied-à-terre or second home.
If your situation involves a company, a mixed-use property or a particular tax arrangement, ask the contractor or a qualified tax professional to confirm how the rules apply.
Can I apply 5.5% VAT to an entire renovation?
No. The 5.5% rate does not automatically apply to an entire renovation. For renovation work, it is reserved for specified energy-efficiency work and qualifying equipment. Other renovation items may be subject to 10% or 20%, depending on their nature and eligibility. Qualifying photovoltaic installations are covered by a separate 5.5% regime.
If I buy the materials myself, can they still receive a reduced rate?
Generally, no. Materials or equipment bought directly by the client are charged at 20%. The contractor’s installation service may still qualify for a reduced rate if the work meets the relevant conditions.
Does a complete renovation automatically mean 20% VAT?
No. A “complete renovation” is not automatically subject to 20% VAT. The assessment depends on the nature and extent of the work and whether it meets the tests for creating a new building or increasing floor area. For a substantial Paris renovation, this is one more reason why I prefer to establish the scope — and understand its implications — before the project moves into execution.
Conclusion
VAT on a Paris apartment renovation can be charged at 20%, 10% or 5.5%, depending on the property and the nature of the work. The 10% rate may apply to eligible renovation work in an older dwelling; 5.5% applies to specified energy-renovation work and certain other qualifying installations, including eligible photovoltaic systems; and 20% remains the standard rate for work and equipment outside those conditions.
What matters to me is that my clients understand the budget they are approving. That means a properly itemised quote, the correct VAT treatment for each part of the project and clarity around the financial impact of sourcing decisions. For an international client renovating in Paris, these are exactly the details I believe should be taken care of rather than left for the client to untangle once the project has begun.
Sources
French Tax Administration — VAT rates for work carried out in residential properties
BOFiP — Reduced VAT for renovation work in residential properties
BOFiP — VAT on energy-renovation work
BOFiP — Application and certification requirements for reduced VAT
BOFiP — VAT treatment of kitchen, bathroom and fitted-storage equipment
BOFiP — 5.5% VAT on qualifying photovoltaic installations
Service-Public — Mandatory information on contractor quotes