6% VAT regime for DemolitionReconstruction projects: scope extended to investor sales
A revised VAT framework is on its way for demolitionreconstruction projects, introducing greater flexibility for developers and investors. What’s new The Government has confirmed that, under the demolition–reconstruction VAT regime, developers may now: Sell to a private individual who will use the dwelling as his/her sole and principal residence; and Sell to an investor (individual or
Flash Update: New Position of Belgian VAT Authorities on Credit Insurance
The Belgian VAT authorities have issued a new circular (Circulaire 2024/C/80) that significantly alters the current approach to VAT recovery for insurers and clients involved in credit insurance. This change stems from the European Court of Justice’s ruling on February 9, 2023, in the case of Euler Hermes SA Magyarországi Fióktelepe (C-482/21). Key Changes as
VAT 6%: Extension of transitional measures for demolition-reconstruction
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
Mixed and partial VAT payers: Extended submission deadline for VAT real use deduction method
Mixed VAT deduction, particularly prevalent among real estate, financial and holding entities, has seen significant changes since last year. For mixed and partial VAT payers employing the real-use deduction method, new specific annual information submission requirements have been introduced, necessitating submissions through the Intervat system. The required information to be submitted in 2024 includes: Full
VAT rate of 6% remains applicable for demolition-reconstruction residential projects for the letting market
In late 2023, the government significantly reduced the ability to apply the reduced VAT rate of 6% to demolition-reconstruction housing projects by limiting the benefit of the reduced rate to projects undertaken by individuals, except when leasing to a social housing agency. This had caused significant concern in the already financially pressured sector. As a
Holding companies – VAT deduction methodology – Reporting obligations
Introduction By the end of June 2023, companies applying the real use VAT deduction method (cost allocation) for mixed taxable persons had to notify it to the Belgian VAT authorities. Now these companies also have to communicate a whole set of information to back-up this VAT deduction methodology. For VAT taxable persons that already applied
Tax changes for the Belgian real estate market
This Newsflash highlights significant measures that influence the landscape of the Belgian real estate market. Indeed, on 9 October 2023, the Belgian government reached an agreement regarding the Federal Budget for 2024. The current budget round was an important one, as the economic climate is deteriorating and this has an impact on the budget of
Reduced VAT Rate for Home Demolition-Reconstruction Extended, Excludes Developers
The Belgian government has announced an extension of the reduced 6% VAT rate for the demolition and reconstruction of homes. However, this benefit will now exclusively apply to individual homeowners. Developers, who previously enjoyed this rate under certain conditions for the sale of apartments and homes, will revert to the standard VAT rate of 21%
