Housing
Association of Certified Accountants warns Government about risks of reduced VAT in construction
The Association of Certified Accountants (OCC) has warned the Government that the new legislation applying a reduced 6% VAT rate to housing construction—instead of the standard 23%—is overly complex and carries significant risks of future litigation with the Tax Authority. Professionals express concern over correctly applying the tax to complex mixed-use developments, where determining the appropriate rate for various suppliers' invoices remains uncertain.
Why it mattersIf you are a property investor or involved in residential construction projects, be aware that the current VAT rules are considered highly ambiguous by tax experts, potentially leading to future disputes with the Tax Authority that could affect your project's costs or legal compliance.
