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Delay in Approval of Program Law Affects 6% VAT Rate for Fossil Fuel Heating Systems

    The approval of the program law regarding the introduction of a 6% VAT rate exception for the installation of heating systems using fossil fuels has been delayed. This delay means the reduced VAT rate can still be applied to such installations during renovations, as long as conditions are met, until the law comes into effect. There will be no retroactive VAT increase. For demolition and reconstruction, the reduced VAT rate exclusion is expected to take effect from July 1, 2025. A transitional arrangement will be provided for contracts signed before these provisions take effect, allowing the reduced VAT rate to be temporarily applied. Details of this measure will be announced soon.

Source: financien.belgium.be

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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