- The Court of Justice of the European Union has ruled that a reduced VAT rate for repairs and renovations of private homes is compatible with EU law.
- The reduced rate applies only if the homes are actually used for residential purposes at the time the services are carried out.
- The ruling applies to the scope of Article 2 of Annex IV of Directive 2006/112/EC, which covers the repair and renovation of private homes.
- The ruling states that an immovable property that is authorized for residential purposes but not actually used for such purposes at the time of the services is not covered by the provision.
- Services related to the repair or renovation of properties used by their owners for commercial or investment purposes are also excluded.
- The Portuguese legislation correctly applies the provision by including only services related to the repair and renovation of properties that are actually inhabited.
- The occupancy of the property during the works is not necessary for it to be considered as actually inhabited.
- The fact that a private home is not used for a certain period of the year does not change its status as a “private home.”
Source: eutekne.info
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.
