- The installation of a fence is subject to a lower VAT rate if certain conditions are met.
- The fence must be part of a residential building that is part of social policy or a special-purpose residential building.
- The fence must be classified as an associated part of the building and not a separate construction object.
- The service must fall under the F/CONSTRUCTION standard classification of activities.
- The Technical Guideline TSG-V-006:2022 classifies fences as other construction engineering objects, so they are not considered associated parts of residential buildings and are subject to the general VAT rate.
- External devices and equipment that are installed on or within the external arrangement of a building are considered separate construction objects if they are listed in Annex 1 of the Regulation on the Classification of Objects.
- If a metal fence, for example, is part of a residential building and not a separate construction object, it can be subject to the lower VAT rate, provided that the conditions of the Regulation are met.
- However, if a brick fence that encloses the entire property and is not an associated residential building is installed, the general VAT rate applies.
- If only the fence is supplied without installation, it is considered a supply of goods and subject to the general VAT rate.
Source: racunovodja.com
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.
