- New Revision Scheme for Investment Services: Starting January 1, 2026, a new revision scheme will require entrepreneurs involved in real estate conversion and maintenance projects to follow a five-year adjustment period for input tax deductions, correcting them as necessary based on actual use.
- Applicability and Conditions: The scheme applies to investment services costing €30,000 or more (excluding VAT) per individual service, covering extensive renovations, repairs, and related demolition work for various types of real estate, including infrastructure. Annual adjustments will assess 20% of the deducted VAT against actual usage over the five-year period.
- Financial Implications of Use Changes: Changes in property use from VAT-taxed to VAT-exempt (or vice versa) will have direct financial consequences, requiring refunds of previously deducted VAT or allowing for additional deductions. Entrepreneurs need to align their investment planning and VAT administration with this new five-year revision period to avoid potential pitfalls.
Source Taxence
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