To take advantage of this measure, the builder must submit a Declaration 111 to the tax authorities. The law states that this must be submitted "before the time when the tax becomes due." However, until recently (August 28), the form was not yet available. Therefore, a transitional measure was provided, allowing landlords to still benefit from the reduced rate as of June 1, 2024. Until the end of August 2024, there is a tolerance allowing the service provider to apply the reduced rate on the invoice, provided the following statement appears on the invoice: "Application of the 6% VAT rate for the demolition and reconstruction of a home intended for long-term private rental (new item XXXVII, § 4 of Table A of the annex to Royal Decree No. 20 of July 20, 1970, regarding VAT - new permanent measure as of June 1, 2024)." The builder must then forward the receipt number 111/5- June 1, 2024, to the service provider(s) as soon as the form has been submitted.
Now that the form is available, you can submit it. The form to be used for social rental has also been updated.
Follow these steps:
1. Log in to MyMinfin.be with your eID or itsme®.
2. Click on the ‘My interactions’ tab.
3. Click on ‘Fill in a form’. The ‘Search’ window will appear.
4. Choose ‘VAT’ in the ‘Theme’ field and click on ‘Search’. A list of documents will appear in the ‘Results’ window.
5. Click on:
• ‘111_2- 01/06/2024: Demolition and reconstruction (social rental)’, or
• ‘111_5- 01/06/2024: Demolition and reconstruction (home intended for long-term private rental)’.
6. Click on ‘Show form’.
7. Fill in the form.
8. Click on ‘Send’.
The slow pace at which the tax authorities made these forms available raises questions about the strict stance they take when the builder submits their forms late. For example, we refer to the stance taken regarding Declarations 111-1 and 2 (Circular 2024/C/32 FAQ, 44.): "The administration accepts that the declaration may be submitted after the start of the works. However, the reduced VAT rate in that case generally only applies to the VAT that becomes due from the date the declaration is submitted. There is no possibility of regularizing the VAT by submitting the declaration after the VAT has become due, except in cases of force majeure (e.g., serious illness of the builder, making it impossible for them to submit the declaration on time) or material error (e.g., the declaration was submitted but is incomplete or contains incorrect elements).
Hopefully, this will lead to some leniency.