The reduced VAT rate of 6 percent for demolition and reconstruction has been approved. The cabinet of Finance Minister Vincent Van Peteghem confirms this on Monday. The measure will apply from 1 January 2021 and this for a period of 2 years.
–
The reduction in the rate to 6 percent had already been announced in the new coalition agreement. The new scheme was approved on Friday, but only became known on Monday. In concrete terms, this concerns the extension of the reduced VAT rate of 6 percent to the entire Belgian territory and that for the demolition of buildings and reconstruction of homes. They may only have a maximum habitable surface of 200 m2 and it must be a private and sole home. Today, a reduced VAT of 6 percent already applies to demolition and reconstruction in 32 urban areas.
The intention is to give both citizens and the construction sector an important tax incentive, according to a press release from the Minister of Finance. “Due to the corona crisis, contractors’ order books are emptying out and new orders are delayed. This measure is being taken very explicitly to support the construction sector, which is coming under increasing pressure due to the corona crisis. This measure will increase the purchasing power of citizens and families because they can acquire new homes at a lower cost. ”
–
