The Court of Auditors recommends the abolition of VAT at a reduced rate of 10% for certain personal services, such as educational support or “small DIY”, in a report published on Wednesday.
Home exercises, personal services (housekeeping, childcare, small gardening, assistance for the elderly and disabled, educational support, etc.) are subject to either at the standard VAT rate (20%), or at the reduced rates of 5.5% and 10%.
The coexistence of these three rates is difficult to read and complicates controls, particularly when a service provider provides activities subject to different rates within the same contract, estimates the Court of Auditors in its report on state support. to the services of the person.
The eligibility of certain activities is questionable
The scope of application of the 5.5% rate, which concerns the provision of services exclusively linked to the essential actions of daily life for disabled people and dependent elderly people who are unable to perform them, is coherent and well-established. delimited.
On the other hand, the distinction between the intermediate rate of 10% and the normal rate of 20% is based on criteria that are, if not arbitrary, at least not explicit, adds the court. The eligibility of certain activities (for example small DIY projects, academic support, administrative assistance) seems in particular questionable, according to them.
Switching to the reduced rate for childcare?
Faced with this observation, the institution recommends end the 10% reduced VAT and to subject all activities to the standard rate of 20%, with the exception of those relating to social needs, subject to the rate of 5.5%.
In addition to the autonomy of elderly, disabled or dependent people, already subject to this reduced rate, childcare could also benefit from it, adds the Court of Auditors.
The impact of this overhaul on vulnerable groups would be offset by two factors, specifies the institution: the mechanical increase in social benefits, the conditions of granting of which could be revised accordingly, and the increase in the tax credit , whose plate is the remaining charge.
Reproduction forbidden.