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On Friday, President Klaus Iohannis promulgated the law that modifies the ceiling to apply the reduced VAT rate of 5% on the tax base for the delivery of homes that have a maximum useful area of 120 square meters, reports Agerpres.
In accordance with the law amending art. 291 of Law No. 227/2015 of the Tax Code, the limit in this case goes from 450,000 lei to 140,000 euros.
Thus, according to the text, the reduced rate of 5% is applied based on the taxation for the delivery of houses as part of the social policy, including the land on which they are built. The land on which the house is built also includes its footprint.
Housing delivered as part of social policy means: delivery of housing with a useful area of up to 120 square meters, excluding domestic annexes, whose value, including the land on which they are built, does not exceed the amount of 140,000 euros, equivalent to lei , excluding value added tax, purchased by individuals. The usable area of the house is defined by the Housing Law no. 114/1996. The annexes of the home are those defined by Law No. 50/1991 relative to the authorization of execution of construction works. The reduced rate applies only to homes that can be inhabited as such at the time of sale.
The provisions of this law enter into force on January 1, 2021.
