The article discusses the variable VAT rate applicable to the sale of renovated properties, highlighting the possibility of also claiming the “first home” benefit even after such renovations.
– The sale of renovated properties is subject to a 10% VAT rate if the sale occurs within 5 years of the completion of the renovation work.
– After 5 years, the sale is exempt from VAT, unless the seller opts for the 10% VAT rate.
– The 10% VAT rate applies to both residential (except luxury homes) and commercial properties that have undergone renovation.
– Even for renovated properties, the buyer can still claim the 4% “first home” VAT rate if they meet the necessary requirements.
– This is confirmed by the tax authorities, who have allowed the 4% VAT rate for sales of residential properties by construction companies or those who carried out the renovations.
– Services related to the renovation work (except for ordinary and extraordinary maintenance) are generally subject to a 10% VAT rate.
– The 4% “first home” VAT rate is only applicable for the construction of residential properties, and has been excluded for renovation work, including demolition and reconstruction with increased volume.
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.
