Update July 10, 2025
Minister Jan Jambon confirmed during the Chamber's plenary session that a administrative tolerance comes regarding the VAT reduction to 6% for the sale of homes rebuilt after demolition by developers.
As stated in the article below, the vote on this bill was delayed due to the urgent opinion of the Council of State. As a result, the new regulation could not enter into force on July 1, 2025. Construction projects for which VAT becomes due between July 1 and the publication of the final legislation in the Belgian Official Gazette would thus be can still be billed under the reduced rate of 6%.
This, of course, insofar as to any other terms is met, including the tightened area criterion of 175 m² in the case of the delivery of a sole proprietary dwelling.
The following practical modalities are already known:
- As of today, it is not possible to submit a statement 111/3 through MyMinFin;
- It is necessary that the sales agreement and/or authentic deeds contain the following statements:
- "Application of the VAT rate of 6% for demolition and reconstruction of a dwelling in accordance with section XXXVII, §3, second paragraph, 1°, (a), (b) or (c) of Table A of RD No. 20 of 20.07.1970 on VAT, as contained in Article 53 of the Program Law (Document House No. 56 0909/001)" AND
- "The statement referred to in the aforementioned section XXXVII, §3 will be submitted without delay through MyMinFin as soon as that option is available."
Attention, the draft program law still needs to be approved!
The vote on this is tentatively scheduled for Thursday, July 17. If the program law is not passed, a regularization (from 6% to 21%) must be performed.
We will, of course, follow this up further for you.
Below you can read our article from June 27, 2025:
As previously announced, the draft Program Law provides for a permanent arrangement for the reduced VAT rate of 6% when selling homes after demolition and reconstruction. This scheme would apply to sales to individuals who use the property as their sole and own home, or for long-term rental, starting July 1, 2025.
The new arrangement would be a important stimulus mean to the real estate industry, with the goal of increasing the supply of affordable and sustainable housing. The conditions are relatively flexible: the property may maximum 175 m² be great, and the buyer has to be there domicile establish or long-term lease under social conditions.
Delay in legislative process
However, on June 25, 2025, discussion of the Program Act in the House of Representatives was interrupted. The opposition parties gathered enough votes to seek an urgent opinion from the Council of State on several amendments. As a result, the vote about the law postponed until after July 1.
If the State Council recognizes the urgency, the vote could possibly still take place on Thursday, July 3. Otherwise, the Council will receive one month to advise, which would significantly delay its entry into force.
What are the implications?
The current temporary arrangement, which it 6% rate allows under strict conditions (such as an environmental permit by July 1, 2023), expires permanently on June 30, 2025.
Without passage of the new legislation before this date, sales of rebuilt homes will as of July 1, 2025 are subject to the standard rate of 21%.
This creates a legal and fiscal uncertainty for developers, contractors and buyers. Invoices issued as of July 1 cannot simply fall under the reduced rate until the law is approved and published in the Belgian Official Gazette.
Conclusion
Although the intent of the legislature is clear and the content of the regulation is already known, the entry into force on July 1, 2025 highly uncertain. The delay in the parliamentary process makes it highly unlikely That the reduced VAT rate of 6% can be effectively applied to invoices from July 1.
Until further notice, it is recommended that when preparing invoices and contracts assume the standard rate of 21%, unless and until the law is finally approved and enters into force.
For further clarification or impact analysis on current projects, please do not hesitate to contact one of our pro experts.
We will, of course, keep you further informed as soon as the enactment is voted on.