Government Proposes Retroactive 6% VAT Rate for Construction Sector to Boost Housing Projects

• The government intends for the 6% VAT rate on construction to apply retroactively, not just after legislative approval.
• The period of parliamentary discussion will not delay the effective date; the measure will be retroactive to the government’s decision.
• The final seller, who commits to selling homes below €648,022, will be responsible for paying the VAT.
• Reduced VAT for architecture projects is only possible for affordable housing, according to EU directives.
• Construction sector associations have warned that delays in implementing the lower VAT could halt housing projects.

Source: jornaldenegocios.pt

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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