“This tax incentive is the lever to get our outdated housing stock energy-neutral more quickly and on time,” says Niko Demeester, CEO of Embuild. “The past few years have shown that this incentive works very well.”
But without intervention from the federal government, that measure will expire at the end of this year. And that is already being felt in the sector, according to Embuild. The reduced VAT rate still applies to the parts for which it can be demonstrated that they have been completed by 31 December at the latest. Current contracts are now also completed as quickly as possible, although a so-called anti-abuse provision has been in effect since 1 July. For permits issued from that date, only 25 percent of the total amount may be invoiced to 6 percent via advance invoices.
“If this VAT reduction is not extended after 2023, the price for energy-efficient construction and renovation will become a lot more expensive for the consumer,” warns Demeester. The temporary VAT reduction of 6 percent on solar panels, solar boilers and heat pumps in homes less than ten years old will also expire at the end of 2023. The construction federation also wants to see this fiscal incentive permanently extended.