Increased VAT Audits on 6% Rate for Demolition and Reconstruction Projects: Key Points to Watch

The VAT administration is conducting more intensive checks on projects applying the reduced 6% VAT rate for demolition and reconstruction due to complex and frequently changing regulations.
Key control points include habitable surface area, ownership of other properties, the intended use of the property, and administrative compliance.
Failure to meet all conditions can result in a revision to the standard 21% VAT rate, leading to extra costs, fines, and interest.
Main requirements: maximum habitable area (175 m² for professional, 200 m² for private builders), no ownership of other homes, specific use and minimum occupancy/lease periods, and strict administrative adherence.
The VAT team offers support with project assessment, compliance checks, and assistance during tax audits.

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.