News article

Consequences of postponement of Belgian programme law

The amendments to VAT rates provided for in the draft programme law for, among other things, the sale of a house that has been demolished and rebuilt (6% instead of 21%), the installation of central heating burners that run on fossil fuels in homes that are at least 10 years old (21% instead of 6%) and the increase from 12% to 21% for coal, were to take effect on 1 July 2025.

Now that 1 July 2025 has passed and the draft programme law has still not been adopted by the Chamber, the question arose as to what impact this delay will have on the aforementioned changes to VAT rates.

Minister Jambon announced yesterday in the Finance Committee that the government will table amendments to the draft programme law to bring these into force from the date of publication of the programme law in the Belgian Official Gazette.

There would therefore be no retroactive effect. It is possible that this will still be allowed for certain measures on a tolerance basis, but this remains to be seen.

For sales of homes that have been rebuilt after demolition, it may be advisable to postpone issuing the invoice on which VAT is due until the VAT reduction has actually come into effect or until there is more clarity on this matter.