Demolition and reconstruction of buildings: evaluating the applicable VAT rate

• The demolition and reconstruction of existing buildings can be considered as a restructuring intervention rather than new construction.
• The definition of “restructuring intervention” has been modified by article 10 of DL 76/2020.
• There are still doubts about the correct VAT rate applicable and whether the reverse charge mechanism should be used.
• The urban classification of the intervention is crucial in determining the applicable VAT treatment.
• The financial administration does not have jurisdiction over the urban classification of the intervention.
• Only recovery interventions that fall under the provision of article 3 of DP? 380/2001 can be subject to a 10% VAT rate for restructuring.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.