- Effective 1 January 2024, there have been changes to the definition of an inhabitable home. The new definition includes requirements such as individual access to living space without disturbing others, access to utilities and waste disposal, designated areas for rest, food preparation, and bathrooms, as well as various installations and finishes.
- Additionally, the VAT rates have been adjusted. The rate for non-alcoholic beer and foods with added sugar (over 10g per 100g) has increased from 9% to 19%. The rate for high-quality food, social housing, renewable energy systems, construction components, and certain recreational activities has increased from 5% to 9%. The rate for specific sports facilities, tourist transportation services, and certain leisure activities has increased from 5% to 19%.
- Furthermore, the VAT exemption with deduction right for operations conducted for state hospital units has been eliminated, except for those conducted for non-profit entities registered in ANAF’s Public Registry.
- Transitional measures have been put in place for housing deliveries contracted before 31 December 2023 and delivered between 1 January and 31 December 2024 to apply the reduced VAT rates.
Source PwC
