Belgium Adopts Permanent 6% VAT Rate for Demolition and Reconstruction of Residential Buildings

• Belgian Parliament adopted new rules for a permanent 6% reduced VAT rate on demolition and reconstruction of private residential buildings
• New rules include a 6% VAT regime on the sale of reconstructed buildings
• Previously, sales of reconstructed buildings were subject to a 21% VAT rate
• VAT-reduced renovation works are limited to 200 m² and sales to private buyers to 175 m²
• New VAT forms must be filed via MyMinfin starting October 2025
• Fossil fuel heating systems no longer qualify for the 6% VAT rate
• Rules effective since 29 July 2025, with transitional tolerance for sales from 1 July 2025
• Scenarios include 6% VAT on demolition and reconstruction works and sales
• Sellers must file declaration form 111/3 for sales of reconstructed dwellings
• Electronic submission of declarations expected to be available by October 2025
• Until 31 December 2025, sellers can apply the 6% VAT rate with specific statements in sales agreements

Source: loyensloeff.com

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.

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