Belgium MOF Announces Proposed Amendments Concerning VAT Reduction on Demolition, Reconstruction of Buildings

The Belgian Federal Public Service-Finance May 6 announced proposed amendments to expand the scope of the VAT reduction rate for the demolition and reconstruction of buildings throughout the Belgian territory, effective June 1. The proposal includes measures to: 1) apply a reduced 6 percent VAT rate to real estate works involving the demolition and joint reconstruction of residential buildings for long-term rentals through specified organizations; 2) apply the reduced VAT rate on properties that are rented for at least 15 years; 3) exclude from the scope, regarding the application of the reduced VAT rate, the supply of new housing, including ...