Beginning 1 January 2016, a building must be at least 10 years old for renovation costs of the building to benefit from the reduced value added tax (VAT) rate of 6%. This change reflects a change from the current rule that requires the building to be at least five years of age.
With this change, private dwellings that currently are five years of age but less than 10 years of age and for which renovation work is being conducted will be subject to VAT at a rate of 21% as from 2016. There are transitional measures that may allow a continued benefit of the reduced VAT rate of 6%.
Read a December 2015 report (PDF 70 KB) prepared by the KPMG member firm in Belgium: Reduced VAT rate for renovation works to private dwellings: transitional measures
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