The amendments adopted to introduce the definition of homes that, at the time of sale, can be occupied as such, in the context of the application of the lower 5% VAT rate.
According to the new definition introduced to the Fiscal Code, in order to apply the lower rate residences must meet the following criteria:
- the owners must have free, individual access to the living space, without disturbing the possession and exclusive use of the space owned by another person or family
- they must have access to electricity and potable water, controlled sewage, and waste disposal
- they must consist of at least one rest area, a food preparation area, and a sanitary unit, irrespective of the existing facilities and the state of completion at the time of delivery.
Source: Law no. 301 on the approval of Government Emergency Ordinance no. 31/2019 regarding the granting of fiscal facilities and on the amendment and supplementation of Law no. 227/2015 regarding the Fiscal Code, supplementing Government Emergency Ordinance no. 11/2018 on the adoption of various budgetary measures and the amendment of Framework Law no. 153/2017 on the remuneration of staff paid from public funds, published on 17 November 2022.
