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Thus, thousands of Romanians can lose the money given as an advance to buy an apartment, write the journalists of Ziarul Financiar.
The Cîțu government postpones a year raising the 5% VAT threshold from about 93,000 euros at present to 140,000 euros. The decision was adopted by Emergency Ordinance on the night of December 30, a few hours before entering 2021.
The government’s decision had not been announced before.
The government has been discussing raising the threshold to 140,000 euros since October, when the bill was passed in the Chamber of Deputies. Since October 20, property developers have invested hundreds of thousands of euros in reconfiguring residential projects to adapt to new market conditions, given the growing demand for more spacious homes.
In addition, from October to the end of December, many clients signed contracts and paid an advance under this law, and now they find expensive homes for almost 20,000 euros. If they cannot cover the difference, they will most likely lose the money given as an advance and the developers will be left with the unsold apartments.
The measure adopted by the Government hits hard in the only sector of the real estate market that has not suffered from the crisis caused by the pandemic, the residential sector. Now, most likely, as of January 1, 2022, the threshold of 140,000 euros for 5% VAT will come into force, unless a new emergency ordinance is issued to postpone it again.
The government considers that this measure would have had an impact of 200 million lei in the collection of VAT, since 5% of the hired apartments would have received VAT, and if the sales are canceled, they will not charge anything. In addition, the State would have received 5% of 140,000 euros, not 93,000 euros.
Customers have so far avoided buying apartments of 100,000-140,000 euros due to the high VAT versus those of less than 93,000 euros. In order not to fall under the 19% VAT, they gave up the purchase of parking spaces, preferring to block access roads or even buy “gray” apartments, since the law establishes that they are “habitable” not fully completed. Others even bought two apartments in the family to unite them and, implicitly, to buy them with 5% VAT.
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