VAT and acquisition of a newly built building

Any real estate acquisition is subject to a transfer tax, often in the form of registration fees.

If the residential complex is sold as new, or considered as new, it will be subject to VAT.

VAT and acquisition of a newly built building

Any real estate acquisition is subject to a transfer tax, often in the form of registration fees. In theory, this tax reaches 12.5% ​​in Wallonia and Brussels, and 10% in Flanders. If the residential complex is sold as new, or considered as new, it will be subject to VAT. This applies to both houses and apartments.

A question still remains: on which basis is the VAT calculated?  Is it on the whole building, or is there a distinction between land and building?

In principle, the sale of a new building is subject to VAT. Both land and building are therefore subject to 21% tax.

There are however situations in which the land will be subject to registration fees and the building to VAT:

  • Land and building are sold by different people
  • Land and building are sold at different times

A building will still be considered as new, even if already built, if it is resold before the 31st of December of the second year following the first occupation or the first use of the property.
The purpose of this is the recovery of the VAT paid at the time of the acquisition as well as part of the registration fees, when reselling the building.

Here is a concrete example to help you understand it: Mr Le Jeune acquires a new apartment subject to VAT in a building in Auderghem. The deed of purchase was passed on July 10, 2017. He will be able to resell his apartment with VAT until December 31, 2019.