Mandatory forms for demolition and reconstruction at 6% VAT
Mandatory forms for demolition and reconstruction at 6% VAT
To apply the reduced VAT rate of 6% for demolition and reconstruction, certain conditions and formalities must be fulfilled. As a contractor, you must receive a copy of certain forms that your client is required to complete and submit online.
Demolition and reconstruction at 6%
Since January 1, 2024, it has been possible, under certain conditions, to demolish and rebuild a home with the reduced VAT rate of 6% and this throughout Belgium. This reduced rate only applies to construction contracts concluded with, in principle, a private client. The property must be the sole and own home of the principal and the habitable area must not exceed 200 m². These conditions must be observed for at least five years.
The application of the reduced rate in case of demolition and reconstruction also applies to dwellings intended to be rented out (since 01.06.2024). The area of the dwelling may not exceed 200 m². The landlord must rent the property to one or more successive tenants for at least 15 years? The tenants must establish their main residence there. Again, only construction contracts are eligible for the application of the reduced 6% rate.
Formalities
To qualify for the reduced VAT rate of 6%, the client must submit a specific form in advance through MyMinfin. Below is an overview of which form should be used and when.
| Which form? | Who submits? | By when? | Required attachments |
| 111/1 – 2024 Demolition and reconstruction (private residence). | Builder – private individual | Before the start of works | Environmental permit
Construction contracts |
| 111/2 – 2024 Demolition and reconstruction (social rental). | Builder (private individual or legal entity) | ||
| 111/5 – June 1, 2024 Demolition and reconstruction (long-term private rental) | Builder (private individual or legal entity). |
The form must also be accompanied by a number of attachments, such as the environmental permit and contracts with the contractor. If the form is only submitted after the start of the works, only the VAT that became due after the submission may be invoiced at 6%.
The client must provide the contractor with a copy of the submitted form. With this copy, you as the contractor are basically exempt from liability if it later turns out that the reduced rate of 6% was wrongly applied.
However, the contractor must include the reference number of the submitted form on the invoice.
