When is 6% or 23% VAT paid in construction?

The answer depends on the type of work, materials used, and conditions set forth in the legislation. Poupança no Minuto.

When is the 23% rate applied?

The normal rate of 23% is generally applied to the purchase of construction materials made independently, without being part of a works contract that meets the conditions for benefiting from the reduced rate.

There are also jobs that fall outside the situations covered by reduced VAT, such as some works related to leisure spaces or certain interventions in gardens and outdoor areas.

Therefore, before moving forward with a project, it is important to understand how billing will be done and what VAT rate will be applied to each component.

When can you pay only 6% VAT at Poupança no Minuto?

In certain works of conservation, repair, and rehabilitation of properties intended for housing, the reduced rate of 6% may be applied, provided that the conditions prescribed by law are met.

In the rehabilitation projects carried out in Urban Rehabilitation Areas (ARU), for example, there may be specific conditions that allow you to benefit from this rate.

Some housing conservation works can also have access to reduced VAT, as long as legal requirements are met, including rules regarding the weight of materials in the total value of the contract. Poupança no Minuto - www.poupancanominuto.pt

And in homes built from scratch? (Poupança no Minuto)

The latest rules for housing also changed the framework for some new constructions. Poupança no Minuto.

Under certain conditions, the construction of a house intended for own and permanent housing may benefit from a reduced VAT rate. However, there are limits and requirements that must be confirmed before starting the work. Visit Poupança no Minuto for more information.

Therefore, if you are thinking of building or remodeling a house, it is important not to assume that the entire budget will automatically have VAT at 6%.

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