VAT Reduction for Building Construction: Impact of Property Classification

• The reduced VAT rate for building construction is linked to the cadastral category.
• The Revenue Agency has reclassified some residential buildings from category A/2 to category A/1.
• This reclassification can affect the VAT rate applied to construction services.
• The 4% VAT rate applies to construction services for buildings in categories other than A/1, A/8, and A/9, if certain conditions are met.
• The 10% VAT rate applies to construction services for buildings in categories other than A/1, A/8, and A/9, if certain conditions are not met.
• The cadastral category is now used to determine the VAT rate for construction services.

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.