VAT of apartment renewal should also be reduced

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napi.hu: The Minister for National Economy announced today that the Ministry is looking into the details of a potential reduction of rate of VAT levied for the construction of new apartments. This is an issue of national economic and social interest because a reduction of the currently 27 per cent VAT levied on residential constructions could at last boost the residential market and the number of newly constructed apartments could soon reach 20 thousand units per year.

At the same time, the Association for Residential Construction (TLE) declared that the new VAT rate should, apart from the sales of new apartments, be applied to the contractors’ fees paid by private persons for the construction of new apartments and to apartment renewals contracted by retail clients. The reason for this is that family homes (detached houses) are mainly built under a construction contract and that lawfully contracted apartment renewals are an important contribution to the improvement of the physical repair of the pool of residential properties – and also of the whitening of the construction industry.

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