Permanent demolition and reconstruction scheme: new forms 111 available

Four scenarios eligible for 6% VAT

There are four permanent scenarios in which a building may be demolished and reconstructed at the reduced VAT rate of 6%:

• A dwelling used by a private individual as their own home;

• A dwelling that is long-term socially rented out by the developer;

• A dwelling that is long-term privately rented out by the developer to private individuals;

• The supply of a dwelling, where the buyer:

  • will use the dwelling as their own home, or

  • will long-term socially rent out the dwelling, or

  • will long-term privately rent out the dwelling to private individuals.

Forms available via MyMinfin

One of the conditions for applying the reduced VAT rate for demolition and reconstruction is the submission of a specific declaration. Until recently, this was not yet possible, as the updated forms for demolition and reconstruction were not available.

Thanks to a temporary tolerance, it was nevertheless already permitted to apply the reduced rate, provided that this was mentioned on the invoice and (where relevant) in the sale agreement or notarial deed. This tolerance will in principle remain in force until the end of 2025, but now that the official forms are available, it is strongly recommended to use them.

Which forms are available?

Depending on the project, one of the following declarations must be submitted via MyMinfin:

• 111_1 – 01/07/2025: Demolition and reconstruction (owner-occupation)

• 111_2 – 01/07/2025: Demolition and reconstruction (social rental)

• 111_3 – 01/07/2025: Demolition and reconstruction (supply); including declaration by the buyer

• 111_5 – 01/06/2024: Demolition and reconstruction (dwelling intended for long-term private rental)

What actions are required in practice?

Ongoing projects started before 1 July 2025

For ongoing projects that already benefited from the reduced VAT rate under a previous scheme, it is not necessary to submit a new declaration.

For ongoing projects that benefited from the reduced VAT rate under the previous demolition and reconstruction scheme for supplies (which expired on 30 June 2025), and that also meet the reduced surface area criterion of 175 m² (instead of 200 m²) as from 1 July 2025, a new Form 111/3 must be submitted. A new declaration by the buyer(s) must also be attached.

Projects started after 1 July 2025

For all projects started as from 1 July 2025 for which no form could yet be submitted, the new forms must be filed as soon as possible and no later than 31 January 2026.

New projects

For all new projects, the form must be submitted before the start of the works.

The declaration, together with any mandatory attachments, must be submitted fully and correctly via MyMinfin.