Demolition and reconstruction - transitional measures for projects launched before 1st January 2024
Two transitional measures are planned:
- Scheme of 32 urban areas.
- Sales of a residential property rebuilt under the previous temporary demolition and reconstruction measure.
Scheme of 32 urban areas
What are the conditions?
Provided certain conditions are met, you can continue to apply the conditions of the former permanent scheme for the 32 urban areas till 30th June 2025.
These conditions are as follows:
- the application for planning permit relating to the operations to rebuild the residential property was filed to the competent authority before 1st January 2024 and
- the VAT due on these transactions has to be payable on 30th June 2025 at the latest.
If you meet these two conditions, you can benefit from the 6 % VAT rate for the demolition and reconstruction of the residential property, up to and including 30th June 2025, under the conditions of the former permanent scheme for the 32 urban areas.
This transitional measure is commented on in Circular 2024/C/30 relating to the reduced VAT rate applicable to the demolition and reconstruction of residential properties throughout Belgium, the Circular 2024/C/32 relating to the new scheme for the application of the VAT rate of 6 % for the demolition and reconstruction of residential properties, the Circular 2024/C/35 erratum 2024/C/32 relating to the new scheme for the application of the VAT rate of 6 % for the demolition and reconstruction of residential properties and Circular 2025/C/2 relating to the reduced VAT rate applicable to the demolition and reconstruction of residential properties throughout Belgium, extension of the transitional measures.
Do I (project owner) have to file a declaration if I want to apply this transitional measure, and if so, which one?
If you have not previously filed a declaration No. 111/4 to the FPS Finance, you must file the new declaration No. 111/4-2025.
If you have already filed a declaration No. 111/4, you do not need to file an additional declaration.
In both cases, however, you must send a copy of the declaration to your contractor(s).
Sales of a residential property rebuilt under the previous temporary demolition and reconstruction measure
What are the conditions?
Under certain conditions, you may continue to apply the sales conditions for a residential property rebuilt under the previous temporary demolition and reconstruction measure till 30th June 2025.
These conditions are as follows:
- the application for planning permit relating to residential property reconstruction operations was filed to the competent authority before 01.07.2023 and
- the VAT due on the supply becomes payable on 30.06.2025 at the latest, pursuant to Article 17, § 1, of the VAT Code.
If you meet these conditions, you can benefit from the 6 % VAT rate for the sale of a rebuilt residential property up to and including 30.06.2025, under the conditions of the previous temporary demolition and reconstruction measure. The seller must file a new declaration No. 111/3-2025 for this purpose in due time, together with the buyer.
This transitional measure is commented on in Circular 2024/C/30 relating to the reduced VAT rate applicable to the demolition and reconstruction of residential properties throughout Belgian territory, Circular 2024/C/32 relating to the new scheme for the application of the VAT rate of 6 % for the demolition and reconstruction of residential properties, Circular 2024/C/35 erratum 2024/C/32 relating to the new scheme for the application of the VAT rate of 6 % for the demolition and reconstruction of residential properties and the Circular 2025/C/2 relating to the reduced VAT rate applicable to the demolition and reconstruction of residential property throughout Belgium, extension of the transitional measures.
Do I (buyer/seller) have to file a new declaration No. 111/3 if I want to apply this transitional measure? If so, which one and when?
If you have not yet filed a declaration No. 111/3 to the FPS Finance, you must file the new declaration No. 111/3-2025. If you have already filed a declaration No. 111/3, you do not need to file an additional declaration.
In both cases, you must provide a copy of the declaration to your contractor(s).
What should I do if a change occurs and involves the conditions no longer being met for the minimum period of 5 years (or 15 years in the case of a long-term rental of residential property within the framework of social policy)?
You must file a declaration No. 111/3B to the administration within three months following the date on which the changes take effect.
Within the same period, (part of) the tax advantage must be refunded.
If you would like a form, please call your local office: Office guide > Particuliers/Individuals > Déclaration/Declaration > Construction - déclaration TVA/VAT declaration - Construction > Commune où est situé le bien immobilier/Municipality where the immovable property is located. A form will be provided.