Law & taxation

What VAT rate applies to renovation work carried out on Belgian properties ?

What VAT rate applies to renovation work carried out on Belgian properties ?

Property renovation benefits from a reduced VAT rate under certain conditions.

Owners must meet certain conditions in order to get a 6 % VAT rate

Since the 12th February 2016, a VAT rate of 6 % applies to renovation work once the following conditions are met :

  • The property must be at least 10 years old, the starting date being the first period of occupancy.
  • The property must be occupied for non-professional reasons.
  • The work must be invoiced directly by the craftsman to the final consumer, whether it be the owner or a tenant.

Good to know

If the property is used partially for professional purposes and for the most part for residential purposes, the 6 % rate of VAT can be applied to work done.

What kind of work qualify for the reduced VAT rate ?

Work carried out in the interior and on the exterior of the building are eligible for the 6 % rate. Examples include :

  • Installation of central heating.
  • Insulation of windows.
  • Installation of a fire alarm.
  • New flooring or wall finishings.
  • Interior and exterior wall painting.
  • Facade renovation.
  • Installation of shutters.
  • Installation of a veranda, terrace or pergola.
  • Maintenance of chimneys, central heating or lifts.

The invoice for the work done must include information, such as the use of the property (residential) and the date of initial occupancy.