Clarifications brought to the notion of “habitable” housing at the time of delivery for the application of the 5% VAT rate: Law no. 301/2022
15 Dec 2022
The takeaway
Law no. 301/2022 clarifies the concept of “habitable” housing at the time of delivery for application of the 5% VAT rate.
In detail
Law no. 301/2022 clarifies the definition of “habitable” housing at the time of delivery used in the content Fiscal Code art. 291.
The normative act clarifies the conditions for the application of the reduced VAT rate that homes must meet on the date of delivery, namely:
- Their holders have free individual access to the living space, without disturbing the possession and exclusive use of the space owned by another person or family.
- Access is available to electricity and potable water as well as the controlled disposal of wastewater and household waste.
- The property must consist of at least a space for rest, a space for food preparation and a sanitary group, regardless of the existing facilities and the degree of finishing on the date of delivery.
The clarifications are intended to avoid abusive interpretations of the notion of “habitable” dwellings, which was not explicitly defined initially in the Fiscal Code.
Source: [Law no. 301/2022 for approval of the Government Emergency Ordinance no. 31/2019 regarding the granting of fiscal facilities and for the amendment and completion of Law no. 227/2015 about the Fiscal Code, published in the Official Gazette no. 1107 dated 17 November 2022]
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