The most important VAT changes expected: 5% new residential property extended and fiscalization (electronic receipts)

• The proposal inserts the 5% reduced tax rate on the sale of new residential property, which was extended for two years from this summer, into the Act on VAT. In addition, it also clarifies that the reduced rate will be applicable for the period between 1^st  January 2025 and 31^st December 2028, provided that the building permit for the construction of the residential property becomes finalized by 31^st  December 2024, or provided the construction activity is reported before 31^st  December 2024 at the latest.
• As a next step in the process of economic whitening and the digitalization of taxation, the proposal sets the framework for the wider use of electronic receipting. The legislation allows for a ministerial decree to lay down rules on other technical solutions for issuing cash registers or receipts, their reporting, and the (remote) monitoring of the devices.

Source: KPMG

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