New VAT rules on building plots (sponsored contribution)
Experts at domoXim.be offer advice on the new ruling for VAT on building plots.What about the 21% VAT to be paid on a building plot?
As from January 1st 2011, when buying a newly built house or apartment, the buyer will have to pay 21% VAT not only on the house or the apartment but also on the value of the land on which it was built.
Before January 1st 2011, one had to pay 21% VAT on the construction and 10% registration cost (frequently even less) on the land.
Of course this new measure, imposed by European legislation, will increase the total purchase cost of a newly built construction.
Bear in mind: this measure concerns only the simultaneous purchase of construction and land from the same company or same seller.
Therefore often the land and the newly built construction will be proposed as two separate offers by two different sellers.
What if one signs a sales agreement before January 1st 2011? No clear and explicit answer yet, as we are all waiting for a definit answer from the minister.
Would you like more information on this matter? Please contact domoXim Real Estate on 02/255.31.30 or send us a mail firstname.lastname@example.org.