- Introduction of Reduced VAT Rate: Effective July 1, 2025, Belgium will implement a reduced VAT rate of 6% for supplies related to the demolition and reconstruction of dwellings, while maintaining existing exemptions for essential goods and services.
- Application and Compliance Requirements: The new VAT provisions apply to various scenarios, including sales to individuals occupying the new dwellings or to entities renting them out for at least 15 years. Sellers must issue corrective documents for any VAT adjustments once the decree is formally enacted.
- Administrative Tolerance for Transition: Although the standard VAT rate of 21% was initially to apply post-July 1, 2025, the tax administration allows a proactive application of the reduced rate, provided all conditions of the new law are met, easing administrative burdens during the transitional period.
Source Fisconet
Belgium Extends 6% VAT for Residential Demolition Pending Legal Approval, Avoiding 21% Rate Burden
- Belgium extends the 6% VAT rate for residential demolition and reconstruction due to a delay in legal approval
- The standard 21% VAT rate will apply from 1 July 2025 until the law is enacted
- The 6% VAT rate will be applied proactively from 1 July 2025 to reduce administrative burdens
- The 6% VAT rate was initially set to expire on 30 June 2025
- The policy note mentioning the 6% VAT rate was released on 24 April 2025 by the Belgian Chamber of Representatives
Source: regfollower.com
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