Recently, the Vivaldi government announced its new budgetary measures. As for the temporary VAT measure for the demolition and reconstruction of homes, it is now made permanent but under stricter conditions. Ciril's tax analyst, Michael Malesevic, will tell you more about it.
What has the Federal Government decided exactly?
The federal government has made the reduced VAT rate of 6 percent permanent for those who demolish a building to construct a new residence. The temporary measure was introduced at the beginning of 2021 to support the construction sector during the COVID-19 crisis. It was initially intended to be valid for two years, but it was extended last year. Now, it is made permanent.
Who does this measure apply to?
It will only apply to individuals. There are conditions attached: it must be the only and primary residence, with a total area of a maximum of 200 square meters. Those who will socially rent their home for an extended period after reconstruction will also qualify for the 6 percent rate.
Unfortunately, property developers like Ciril will no longer be able to benefit from it. However, there will be a transition period during which the measure will be extended for one more year under the previously established conditions and only for those projects for which the building permit was submitted before July 1, 2023.
What does this mean for Ciril's projects that could use the measure?
Well, if Ciril, taking into account the Breyne Law, can invoice the customer before 12/31/2024 for the sale of a residential unit (apartment or house), and all conditions* are met, then 6% VAT can be applied to the invoice for that payment installment. Specifically, our projects Bonnefant, Brouwmeester, and Maarten are still eligible for the transition period.
Bonnefant, Hasselt
The apartments and assisted living units at De Bonnefant that are still for sale today are all ready to move into. Those who sign their deed before 12/31/2024 and meet the conditions* can still benefit from the measure and save 15% VAT on their purchase price.
www.debonnefant.be
Brouwmeester, Wechter
The apartments at Brouwmeester are still under construction. Invoices for buildings Gerst and Mout that Ciril still sends out before 12/31/2024 can be subject to 6% VAT, provided the customer meets the conditions*.
www.brouwmeester.be
Maarten, Mechelen
In Maarten, the apartments are also still under construction, and the same rules apply as for Brouwmeester. Invoices that Ciril still sends out before 12/31/2024 can still be subject to 6% VAT if the customer meets the conditions*.
www.maarten-mechelen.be
*Conditions
As a buyer, you also need to adhere to certain conditions to take advantage of the measure in one of the above projects. These conditions are:
- The purchased residence must be your sole and primary residence for at least 5 years, and
- You must purchase as a natural person, not through a company.
For more information, visit the website:
https://www.vlaanderen.be/bouwen-wonen-en-energie/bouwen-en-verbouwen/btw-tarief-van-6-bij-renovatie-en-sloop-en-heropbouw-van-woningen
