The reduced VAT rate of 6% on demolitions and reconstructions will remain in effect, announced Finance Minister Jan Jambon on Wednesday evening.
The legislation enshrining this measure was facing potential delay because the programme law has yet to be adopted by the Belgian Chamber of Representatives.
Debates on the programme law continue in the Chamber, with thematic discussions involving relevant ministers. Following discussions with Employment Minister David Clarinval (MR) and Social Affairs Minister Frank Vandenbroucke (Vooruit), Finance Minister Jan Jambon (N-VA) is currently being questioned by the deputies.
The programme law includes several reforms the government intended to implement on 1 July, such as introducing parental leave for foster families and limiting the indexation of the highest pensions, along with making the reduced VAT rate on demolitions and reconstructions permanent.
The VAT rate, previously set at 6%, was a temporary measure expiring on 1 July. As the law wasn’t passed in time, there is currently no legislation covering the reduced VAT rate.
Jambon announced an "administrative tolerance" will be granted for the period between 1st July and the publication of the programme law in the Belgian Official Journal. He described this as an "important support measure to help families acquire affordable and energy-efficient housing."
The programme law stipulates that the reduced 6% VAT rate will also apply to "turnkey" projects but only for primary residences with a maximum area of 175 square metres, reduced from the previous 200 square metres.
