Transitional arrangement regarding the increase in the age requirement to get the reduced VAT rate for renovation works

Transitional arrangement regarding the increase in the age requirement to get the reduced VAT rate for renovation works

As announced, as of 1 January 2016 the age requirement of the residence in order to be able to enjoy the reduced VAT rate of 6% is being raised from the current five years to ten years.

The FPS Finance has provided a transitional arrangement for houses that are between five and ten years old, but whose works have not yet been (entirely) implemented or invoiced. Notwithstanding the raised age requirement, renovation works on such houses can still be done at the reduced rate of 6% after 1 January 2016 if :

  1. the residence was taken into use for the first time between 1 January 2007 and 31 December 2010,
  2. an agreement with regard to specific works is concluded by 31 December 2015 at the latest:
  • an offer or general description is not sufficient,
  • the contract must have a fixed date (via registration, through recording in a notarial deed or by providing a copy of the contract with acknowledgement of receipt to the VAT Control Office by 31 December 2015 at the latest)

or an application to obtain an urban development permit or a reporting form with regard to specific works is filed,

  1. the invoices relating to these works are issued by 31 December 2017 at the latest, and
  2. the works naturally also meet all of the requirements for the reduced rate.

The complete transitional arrangement, with a number of examples, can be found on the website of the FPS Finance.

For more information on this topic, you can consult Ewoud Willaert.