{"id":4555,"date":"2024-05-03T16:01:27","date_gmt":"2024-05-03T15:01:27","guid":{"rendered":"https:\/\/pkfbofidi.com\/toelichting-btw-tarief-van-6-voor-afbraak-en-heropbouw\/"},"modified":"2025-02-03T10:11:39","modified_gmt":"2025-02-03T09:11:39","slug":"explanation-of-the-6-vat-rate-for-demolition-and-reconstruction","status":"publish","type":"post","link":"https:\/\/pkfbofidi.com\/en\/explanation-of-the-6-vat-rate-for-demolition-and-reconstruction\/","title":{"rendered":"Explanation of the 6% VAT rate for demolition and reconstruction"},"content":{"rendered":"<p>On Friday, April 26, the administration published a new circular (2024\/C\/30) providing further details on the new permanent regime for the reduced VAT rate on demolition and reconstruction, which has been in effect since January 1, 2024. The circular also covers transitional measures for projects that still fell under one of the previous schemes (32 cities or temporary regime).<\/p>\n<p>In this new circular 2024\/C\/30, the administration provides additional clarification regarding the new permanent regime. Notably, several tolerances from the previous circular 2021\/C\/18 regarding the temporary scheme are maintained. This is not surprising, as the new permanent regime is closely aligned with the former temporary scheme. In several instances, the circular explicitly refers to the previous temporary scheme circular (2021\/C\/18), such as the determination of the 200m\u00b2 livable surface area.<\/p>\n<p>This circular also announces the upcoming expansion of the permanent regime, expected on June 1, 2024, regarding private rental and an expansion of the possibilities for social rental.<\/p>\n<p>Despite the similarities, the circular introduces some new aspects compared to the previous scheme:<\/p>\n<ul>\n<li>Closer connection between demolition and reconstruction: The administration will assess whether the demolition and reconstruction were planned together from the outset. A long gap between demolition and reconstruction may raise doubts about this connection.<\/li>\n<li>Assisted living residences may also qualify for the reduced VAT rate if the conditions are met.<\/li>\n<li>Updated declarations: One for self-occupation and another for properties intended for social rental.<\/li>\n<li>Reference to decision E.T. 120.125: Selling an old building combined with a construction contract for a new one is considered an abuse, not only for renovations but also for demolition and reconstruction.<\/li>\n<li>The possibility of applying the reduced VAT rate in cases of natural disasters\u2014i.e., &#8220;involuntary demolition&#8221;\u2014is now permanent.<\/li>\n<\/ul>\n<h3>Transitional measures for ongoing projects<\/h3>\n<p>Permanent 32-city measure:<\/p>\n<ul>\n<li>The reduced VAT rate can still be applied for work completed until December 31, 2024.<\/li>\n<li>As of January 1, 2025, the new scheme can apply, provided a declaration is submitted by May 31, 2025, and a copy is given to service providers.<\/li>\n<li>If not submitted, invoices issued from January 1, 2025, will be subject to the standard 21% VAT rate, even for ongoing projects.<\/li>\n<\/ul>\n<p>Temporary scheme applicable to the entire territory (regarding new building deliveries):<\/p>\n<ul>\n<li>From January 1, 2024, a new declaration (111.3-2024) is required to apply the 6% VAT rate on deliveries (or off-plan sales). The administration allows submission until June 1, 2024.<\/li>\n<li>Any changes to the building permit in projects under the transition scheme may affect VAT eligibility, especially regarding building purpose, number of units, or parcels.<\/li>\n<\/ul>\n<h2>Our PKF BOFIDI experts are here to help<\/h2>\n<p>Do you have questions about the 6% VAT rate for demolition and reconstruction? <a href=\"https:\/\/pkfbofidi.com\/en\/contact\/\">Contact<\/a> Annelies Renier, VAT expert at PKF BOFIDI, for further assistance.<\/p>\n<p>This article was written by Annelies Renier.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 6% VAT rate for demolition and reconstruction offers interesting benefits for construction projects, but the regulations can be complex. This article clarifies the conditions for qualifying for the reduced rate and discusses the practical application, so you know exactly when and how to take advantage of it. <\/p>\n","protected":false},"author":1,"featured_media":1157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[92],"tags":[116,175,185],"class_list":["post-4555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-btw-en","tag-pkf-bofidi-tax-en","tag-tax-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.2 (Yoast SEO v28.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Explanation of the 6% VAT rate for demolition and reconstruction | PKF BOFIDI<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pkfbofidi.com\/en\/explanation-of-the-6-vat-rate-for-demolition-and-reconstruction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Explanation of the 6% VAT rate for demolition and reconstruction\" \/>\n<meta property=\"og:description\" content=\"The 6% VAT rate for demolition and reconstruction offers interesting benefits for construction projects, but the regulations can be complex. 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