The Minister of Finance announced yesterday an extension until June 30, 2025, of the transitional measures for the demolition-reconstruction of housing at a VAT rate of 6%.
This measure is welcome, considering that many construction projects have been delayed, particularly due to weather conditions, and that the new measures outlined in the De Wever note will likely not be implemented before January.
Projects in the 32 cities and municipalities: works at 6% – extension of the transitional measure
You can continue to apply the conditions of the old regime for the 32 urban zones until 30.06.2025.
The conditions are as follows:
- The application for a building permit related to the reconstruction operations of the residential building was submitted before 01.01.2024.
- The VAT due on the works is payable no later than 30.06.2025.
- Submission of declaration 111/4 or 111/4-2024.
In all cities and municipalities
Sale at 6%: extension of the transitional measure
This measure concerns the purchase of a home/appartment from a developer at a VAT rate of 6%. Note that the conditions are strict, including:
- Application for a building permit submitted before 01.07.2023
- VAT on the sale payable no later than 30.06.2025
- Declaration 111/3-2024 to be submitted before July 1, 2024, or before the VAT becomes payable (tolerance for sales on plans)
- Own and unique home
Works at 6% for long-term rental
This measure introduced this year is definitive and targets works carried out by a developer or a private individual aimed at the demolition-reconstruction of housing for rent. It must not be the unique home of the tenant and a 111/5 form must be submitted.
Works carried out by a private individual and rental under social policy
These measures are definitive and are not modified.
To take advantage of these benefits, it is essential to meet the complex conditions relating to the works and specific formalities, such as proper declarations and invoice mentions. Therefore, a thorough analysis of each project is necessary to ensure these conditions are met.
Your team is at your disposal to answer your questions and assist you in your procedures to ensure the success of your real estate projects.
