- Expands the VAT reverse charge mechanism for construction services to all taxpayers, regardless of VAT deduction rights.
- Applies a reduced VAT rate to construction and rehabilitation projects for permanent residences and qualifying rental properties.
- Introduces a partial VAT refund scheme for construction services on properties intended as the buyer’s permanent residence.
- Proposed VAT changes effective from January 1, 2026, with reduced rate and refund scheme valid until December 31, 2032.
- Law requires parliamentary approval before enactment.
Source: taxathand.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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