Finally clarity regarding renewed information requirements on the part of owners of newly constructed buildings
04 June 2020
In a new VAT circular (circular 2020/C/51 dated 6.04.2020), the FPS Finance clarifies the purpose of form No. 111 B57 relating to the communication of information on newly constructed buildings for VAT purposes. This form replaces form 106.3, which has not been applicable since the Act of 30 July 2018 containing various provisions relating to value added tax.
Form no. 111 B57 regulates a specific information requirement borne by owners of newly constructed buildings. The owner is obliged to communicate specific information relating to this building at the latest within three months from the date of the notification of the cadastral income by the Revenue and Valuation Department. This information requirement must contribute to the correct levying of VAT on transactions that have contributed to the construction of buildings.
Selection of files based on a questionnaire
In order to make a selection of the cases that require further investigation, the VAT authorities request certain information from the owner of a newly constructed building on the basis of a questionnaire (15 questions).
In addition to the administrative data about the building, such as the address, the type of building (semi-open buildings, terraced houses, etc.) and the references of the planning permission granted by the competent authority, some additional information on the construction work must also be provided:
- The nature of the works carried out (new construction or reconstruction after demolition) and the VAT rate applied to those actions by the contractor (s);
- The relevant architectural characteristics of the building (e.g. the ground surface of the different floors of the building, the number of floors, the shape of the building, the type of roof or the presence of cellars or outbuildings);
- The relevant building techniques used (e.g. installation of solar panels, heat pumps, air conditioning, underfloor heating, home automation, etc.);
- The cost price excluding VAT of the construction works;
- An overview of the works carried out by the owner of the building;
- The information concerning the possible destination of the building (e.g. rental or immediate resale);
- The missing contact details of the contact person and the signature of the owner (if not already included in the document sent to the owner).
How should the form no. 111 B57 be submitted?
In principle, the above information must be communicated electronically via a specific application which will be made available on the FPS Finance website. This application is not yet available. The form should therefore preferably be sent by e-mail to the e-mail address indicated in the grey box on the letter.
If the client does not submit the form on time, he may incur a non-proportional tax fine of EUR 50 to EUR 5,000 per violation.
Some general VAT obligations
Not every constructor will receive the form No. 111 B57. Regardless of whether or not the client receives the Form, he must in any case comply with some general VAT obligations:
- Keep plans, specifications and invoices for 5 years from the date of the notification of the cadastral income;
- Submit these documents upon request by one of the officials. When these documents cannot be presented, this entails some sanctions;
- He has to charge 21% VAT for the working hours and materials charged by contractors and self-employed persons. Self-purchased materials are also subject to the 21% VAT rate . However, in certain cities and under certain conditions the demolition and reconstruction of a private dwelling is subject to the reduced 6% VAT rate.
Questions regarding this subject can be addressed to one of our VAT specialists, or you can send an e-mail to [email protected]: