- The completion of construction work determines the application of VAT rates in real estate.
- A building is considered complete when it is ready for use or consumption.
- The completion date starts a 5-year period after which construction companies can opt for VAT exemption on property sales.
- The completion of work is crucial for determining the VAT regime for property sales.
- If construction is incomplete, the property is taxable only if it remains in the production circuit.
- If sold to the final consumer, the transaction is VAT exempt.
- The VAT rate for unfinished buildings is generally 10 percent, with exceptions for non-luxury homes and certain classifications.
- Specific VAT rates apply to construction service contracts, such as 4 percent for non-luxury homes with first home requirements and 10 percent for others.
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.
