Buying with VAT

Buying with VAT

  • When do I have to pay VAT on the purchase of a home?

    If you buy a new home from a property developer, you will have to pay 21% VAT. A private individual may also decide to apply VAT when selling a new home. He or she will inform you of this and must specify it in the first written agreement (e.g. the preliminary sales agreement).

  • When is a home ‘new’?

    A home is new up to 31 December of the second year following the year in which it entered use or was inhabited for the first time.

    Example: a home that entered use for the first time in 2019 is new until 31 December 2021.

  • How much VAT do I have to pay on a new home if the seller applies VAT to the sale?

    In principle, the applicable rate of VAT is 21%. However, if you buy a new social home, you will pay 12% VAT on it if you buy it from a Public Centre for Social Welfare (OCMW/CPAS); 6% VAT is payable if you buy it from a regional housing company or a social housing company recognised by the former.

  • What do I have to do as the buyer of a home if the seller applies VAT to the sale?

    You do not need to take any action yourself. The seller will take care of all the VAT-related formalities. In the deed of sale he or she will indicate the VAT office with which he or she will file a special 104.5 VAT return, as well as the year in which the building was first subject to property tax.

  • I am buying a new home. Do I also pay VAT on the purchase of any land?

    As far as the land accompanying a new home is concerned, in principle VAT is also payable at a rate of 21%.

    This is subject to the following three cumulative conditions:

    • Permission was granted to build on the land, and the building that has been erected is being sold subject to VAT
    • The land and building are being sold by the same person
    • The land is being transferred together with the building

    If these three conditions are not fulfilled simultaneously, you will pay registration fees on the purchase of the land. These amount to 10% of the purchase price if you are purchasing land in the Flemish Region and 12.5% in the case of the Walloon or Brussels Capital Region.

  • What is the VAT situation if I buy a house or flat off plan?

    The following rules apply to the land accompanying a house or flat that you buy off plan:

    • The flat or house is yet to be built: you pay registration fees on the purchase price of the land.
    • The flat or house is already under construction: you pay VAT on the purchase price of the land.

    If you buy a building plot only, you pay registration fees on the price of the land. After all, in this case you are not buying a new building with accompanying land.