Labor & Taxes
Reduced VAT on rehabilitation: rules apply from 2022
The Accountants' Association (OCC) clarified that the new law confirming a 6% VAT rate for urban rehabilitation works (regardless of whether a specific municipal urban rehabilitation operation was approved) only applies to taxes due from January 1, 2022. This interpretation excludes cases where the tax liability had already expired or where previous disputes were already closed or judicially settled.
Why it mattersIf you are a property owner or investor involved in past rehabilitation work disputes, this clarification determines whether you can retroactively benefit from the lower 6% VAT rate or if the statute of limitations from 2022 onwards bars your claim.
