The refund procedure
- For the purchase of construction materials, i.e. when the owner undertakes the works himself without having recourse to the various categories of tradesmen;
- For the sale of new buildings the intended use of which is not yet defined and for contracts of sale of buildings to be built insofar as they concern new constructions undertaken at the time of the contract;
- For invoices where the amount exclusive of tax do not exceed €3 000;
- In cases where the effective use of the dwelling is not yet determined at the time of its creation or renovation.
Each invoice must separately relate to an amount exclusive of VAT exceeding one thousand two hundred and fifty Euros (€1 250).
Note: Any right to VAT refund is limited to 5 years as from the 31st of December of the calendar year in respect of which the tax is to be refunded.
Any person having undertaken or has caused to be undertaken the works listed above, without benefiting from the direct application of the rate of 3% can request VAT refund, provided that:
- The request relates to a total amount, excluding VAT, exceeding €3 000 and covers a minimum period of 6 months;
- The time limit for VAT refund has not expired;
- The total amount of the VAT relief does not exceed €50 000 per dwelling created or/and renovated.
A list of invoices accompanied by the originals of the invoices as well as proofs of payment must be annexed.
According to the regulations applicable before the coming into effect of this law, the tax relief granted was in question when the dwelling for which it was granted was sold or used for purposes other than as the main residence within ten years as from the 1st of January of the year of completion of works for which is the relief is granted. In the event of a sale, there was no need to adjust the VAT amount as long as the buyer took over the related obligations from the seller. The tax relief granted was to be refunded up to 1/10th per remaining year to complete the ten-year period.
Pursuant to the new law, the tax relief is to be fully returned with interests at the legal rate as from the day of its grant if the dwelling is used for purposes other than as the main residence within two years as from the 1st of January of the year following the one during which the eligible works were completed. The beneficiary of the tax relief is exclusively responsible for the reimbursement. Failure to define the intended use within the timeframe is deemed to be use for purposes other than as the main residence.
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