Program Law and 3 circular letters published on demolition and reconstruction, heating systems, and coal

New VAT Rates for Demolition and Reconstruction: Effective July 1, 2025, Belgium reinstated a reduced VAT rate of 6% for the demolition and reconstruction of dwellings, applicable under specific conditions such as a maximum habitable area of 175 m². A transitional regime allows the application of this rate retroactively for transactions dating back to July 1, 2025, provided conditions are met.
Restrictions on Heating Systems: The reduced VAT rate will no longer apply to parts or components of central heating systems operating on fossil fuels, including burners and control devices, effective from July 29, 2025. However, a ministerial tolerance allows the 6% rate for agreements signed before certain deadlines, provided VAT is chargeable by June 30, 2026.
Abolition of Reduced VAT on Coal: Belgium has abolished the previously reduced VAT rate of 12% on coal and related solid fuels, which will now be subject to the standard VAT rate of 21% starting from July 29, 2025. This change reflects a move towards more stringent taxation on fossil fuels.

Date	No.	Summary
28.07.2025	2025/C/48	on the new 6% VAT rate scheme for the demolition and reconstruction of dwellings
28.07.2025	2025/C/47	on the rate of VAT applicable to the supply with installation of a central heating system powered by fossil fuels in the course of renovation, demolition and reconstruction
28.07.2025	2025/C/46	on the increase of the VAT rate on coal and coal derivatives

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