Renovation VAT in Belgium: 6% or 21%? Conditions and eligible work

What VAT rate applies to renovation work in Belgium?

In Belgium, building work is generally subject to the standard VAT rate of 21%. Federal legislation nevertheless provides for a reduced rate of 6% on certain work carried out in a private home.

This measure mainly covers renovation, alteration, improvement, repair and maintenance work on residential buildings that meet the age requirement.

The reduced rate of 6% for renovating a home

The 6% rate may apply when the home is at least 10 years old, is used mainly for private purposes and the work meets the conditions set by the tax authorities.

It can cover insulation, roofing, sanitary installations, electrical work, flooring, windows and façade renovation, among other things.

The contractor must carry out qualifying work and invoice the final consumer, including the required statutory wording.

The standard rate of 21% for excluded work

The standard rate of 21% still applies to new construction, work that does not meet the conditions for the reduced rate and certain expressly excluded categories.

Examples include materials bought directly by a private individual, architects' fees, garden landscaping and the installation of certain fossil fuel boilers.

Overview: VAT at 6% or 21%?

Remember: the VAT rate does not depend solely on the building. You must also consider the type of service, the conditions that apply and the items being invoiced.

What are the conditions for the 6% VAT rate?

To qualify for the reduced rate on renovation work, several conditions must be met together. Meeting just one of them is not enough.

1. The home must be at least 10 years old

The first condition concerns the age of the building.

The authorities consider the home's date of first occupation and the date of the first invoice for the work. They assess its age in calendar years.

Example: a house first occupied in November 2016 may meet the age condition for work first invoiced in February 2026. There is no need to wait until November 2026.

By contrast, a house first occupied in 2018 will not normally meet this condition if the first invoice is issued in 2026.

The year of purchase, the date planning permission was granted and the date of an earlier renovation do not replace the date of first occupation.

To substantiate the building's age, keep the available documents: its occupancy history, cadastral information, old contracts or other evidence showing when the home was first brought into use.

2. Check private use and which parts of the property the work concerns

For qualifying work on the whole home to benefit entirely from the 6% rate, more than 50% of the home must be used for private purposes after the work. The work must concern at least part of the private living space.

This condition also applies to mixed-use homes: an individual may, for example, run a self-employed business from part of their house.

If 30% of the building is used for business and 70% is private living space, renovating the entire roof may qualify for the 6% rate when the other conditions are met.

Conversely, if the work concerns only a business office separate from the private part of the home, the standard rate of 21% generally applies.

You therefore need to distinguish between the overall use of the home and the part actually affected by the work. When business use predominates and the work concerns the whole building, the price must be apportioned between the private part eligible for the reduced rate and the business part subject to 21%.

3. The work must qualify

The third condition concerns the type of work undertaken.

The work must constitute renovation, a qualifying alteration, improvement, repair or permitted building maintenance.

Work does not qualify simply because it takes place in an older house.

For example, repainting interior walls may qualify for the reduced rate, while regular window cleaning as part of ordinary household maintenance is normally still subject to 21%.

Certain new energy installations, technical equipment and outdoor works are subject to specific rules.

4. The work must be supplied and invoiced to the final consumer

The reduced rate applies to work supplied and invoiced directly to the final consumer.

This can mean an owner, tenant or usufructuary. The reduced rate is therefore not restricted to people who legally own their home.

An owner renovating a property let for private residential use may also qualify, depending on the use of the property and the circumstances of the service.

The contractor, whether operating through a company or as a sole trader, must check that the work meets the conditions for the applicable VAT rate.

5. The invoice must include the statutory wording

The invoice must show the work carried out, the amounts excluding VAT, the rates applied and the information required to substantiate use of the renovation scheme.

Since 1 July 2022, mandatory wording on the invoice has replaced the former VAT certificate generally used to justify the reduced renovation rate.

This requirement is explained in more detail below.

Which renovation work qualifies for the reduced rate of 6%?

Qualifying work can involve the interior, exterior or certain technical installations of the home.

The following tables set out the main cases in which FPS Finance distinguishes between the reduced rate of 6% and the standard rate of 21%.

References to the 6% rate always assume that the general conditions of the scheme are met.

Interior work: kitchens, bathrooms, electrical installations and floors

The distinction depends partly on whether the installation forms part of the immovable property.

A kitchen with fixed cupboards, a connected sink and an extractor hood may qualify for 6% subject to conditions. Household appliances such as the oven, refrigerator and dishwasher remain subject to 21%, even when built in and supplied as part of the kitchen installation.

Exterior work: roofs, façades, windows and terraces

Note: exterior work must relate to the home and fall within the scope of the scheme. An adjoining terrace and a separate terrace at the end of the garden are not necessarily subject to the same rate.

A new conservatory or extension must also be assessed against the rules that distinguish renovation from new construction.

Repairs, maintenance and cleaning: what is the difference?

Certain building maintenance services also qualify for the reduced rate.

These may include chimney sweeping, unblocking drains, lift maintenance or repairs to a qualifying installation.

However, routine household cleaning, such as vacuuming floors, washing windows and regularly cleaning rooms, remains subject to 21%.

Preparatory cleaning directly connected with certain renovation work may follow the VAT treatment of the qualifying service.

Which work remains subject to 21%?

Even in an older home, certain work remains excluded from the reduced rate:

• new construction that does not fall under a specific scheme;
• professional services provided by architects, surveyors and engineers;
• materials bought separately;
• gardening work and freestanding fences;
• swimming pools, saunas and excluded leisure installations;
• work solely for business purposes in a separate space;
• demolition carried out on its own without preceding renovation, repair or maintenance work;
• equipment or installations expressly excluded from the scheme.

The applicable rate must be checked for each category rather than inferred from the overall price of the project.

Building materials: VAT at 6% or 21%?

The VAT treatment of materials is one of the main sources of confusion during a renovation.

Buying the materials yourself: 21% VAT

If you buy tiles, windows, insulation, sanitary equipment or other building materials directly from a retailer, the purchase is subject to the standard rate of 21%.

Intending to use these products in a home more than 10 years old does not change the VAT rate on the purchase.

Even if a contractor subsequently installs them, the materials supplier's invoice remains separate.

Supply and installation by the contractor: 6% VAT may apply

When the contractor supplies and installs the materials as part of qualifying building work, the supply and the work may together qualify for the reduced rate.

Practical example:

An owner wants to replace the floor tiles in their 25-year-old house.

• If they buy the tiles themselves, the purchase is subject to 21%.
• If they ask a contractor to supply and lay the tiles, the complete service may be invoiced at 6% if all the conditions are met.

This difference should be taken into account before buying materials for DIY work.

An attractive purchase price does not therefore guarantee that the total cost including VAT will be lower than a quotation covering both supply and installation.

VAT on energy improvements: insulation, heating and heat pumps

Work to improve a home's energy performance is an important part of the renovation sector.

It may involve insulation, ventilation systems, central heating or hot water production.

Its VAT treatment depends on the type of installation and, for certain technologies, on specific rules that have recently come into force.

Insulation and energy performance improvements

Insulating a roof, walls or certain parts of a home may qualify for 6% VAT when the work meets the conditions of the renovation scheme.

The same generally applies to certain work on windows, integrated ventilation equipment and qualifying technical installations.

This work can reduce energy consumption, limit heat loss and improve indoor comfort.

In Wallonia, Brussels and Flanders alike, VAT rules are federal. Any regional grants or financial assistance are separate schemes whose eligibility and funding conditions must be checked.

Installing a gas or oil boiler: check the 21% rate

Since 29 July 2025, the supply and installation or replacement of components specific to a fossil fuel central heating system have generally been subject to 21% VAT. For building work ordered under a contract concluded by 28 July 2025, the transitional concession only covered VAT that became chargeable by 30 June 2026, subject to conditions and proof of the contract date.

This exclusion covers gas and oil boilers, their fuel supply and the components specific to their operation.

However, certain components that can also be used in a system running on a different energy source may still qualify for 6%: radiators, water pipes, underfloor heating and distribution components.

The corresponding rate also applies to the labour associated with those components.

Example: a contractor replaces a gas boiler and several radiators in an older home. The boiler and its specific components are normally subject to 21%, while the radiators may be invoiced at 6% if the conditions are met.

Maintenance and repairs to an existing installation are not subject to this rate increase, whether they concern specific or non-specific components. They can therefore remain at 6% when the conditions of the renovation scheme are met.

Heat pumps: a specific 6% VAT scheme

Heat pumps may benefit from more favourable treatment.

In a home at least 10 years old, their installation may fall under the permanent renovation scheme at 6%, subject to the applicable conditions.

For certain homes less than 10 years old, a temporary measure also allows the 6% rate on the supply and installation of qualifying heat pumps, for VAT that becomes chargeable from 1 January 2026 to 31 December 2030.

The temporary measure covers equipment intended for heating, including air-to-air systems that can also cool the home if their heating function cannot be permanently disabled. It imposes European emissions and energy labelling criteria. It excludes heat pumps combined with another non-electric heating system connected to the same water circuit and capable of operating independently and simultaneously, whether or not that other heating system is installed at the same time.

Equipment intended solely for cooling, purchases without installation and non-specific distribution components such as radiators, underfloor heating and the thermostat do not benefit from this temporary measure. It also excludes maintenance and repairs to an installation in a home less than 10 years old.

You therefore need to check the technical specification, the work included, the age of the home and the wording on the invoice.

Major renovation or new construction: which VAT rate applies?

A project described as a renovation may sometimes be extensive enough to be treated as new construction.

In that case, the 6% rate for ordinary renovation is no longer automatically available.

Can an extension qualify for the reduced rate?

An extension is not necessarily treated as new construction if it forms a coherent whole with the existing building and meets the criteria of the renovation scheme.

FPS Finance specifies, in particular, that the retained original part must represent at least half of the total floor area after the work.

The new part must not form a dwelling independent of the existing home.

The floor area calculation must take account of specific rules for basements, garages, attics, demolished parts and the areas actually retained.

The role of the building's load-bearing structure

In a major alteration, retaining walls and load-bearing elements is another important criterion.

The length of the retained original load-bearing structure, measured in linear metres, must represent at least 50% of the total length of the load-bearing structure after the work. Party walls do not count as retained original load-bearing structure.

Rebuilding a wall in the same place does not mean it counts as retained original structure.

For a major project, it is therefore useful to ask the contractor or a tax adviser for an assessment before work starts.

Planning permission alone does not guarantee that an alteration will continue to be treated as renovation for VAT purposes.

Demolition and rebuilding: can you qualify for 6% VAT in Belgium?

Demolition followed by rebuilding falls under a separate scheme from ordinary renovation work.

Since 1 July 2025, a permanent scheme has allowed the reduced rate of 6% on demolition and rebuilding in Belgium in several situations.

The main situations covered

The four statutory measures include several possible uses for a rebuilt home that is sold. The table separates these uses to make them easier to read.

Why are there separate limits of 175 m² and 200 m²?

The limits of 175 m² and 200 m² are not a general rule applying to all renovations.

They concern different demolition and rebuilding operations and depend on the type of project, who commissions the work or sells the property, and the home's intended future use.

You therefore need to distinguish between work commissioned directly by an owner and the purchase of a rebuilt home from a property developer.

These schemes require specific declarations and commitments lasting a set period. The conditions relating to an own and sole home must be maintained at least until 31 December of the fifth year following the year of first occupation or use; for the rental arrangements covered, the period runs at least until 31 December of the fifteenth following year.

The 6% rate does not apply simply because a new building has replaced an old one.

From what date can the reduced VAT rate apply?

Several dates matter for the VAT treatment of a renovation. They must not be confused.

The date the home was first occupied

For ordinary renovation, the age of the building is assessed by comparing the year of first occupation with the year of the first invoice for the work.

A home first occupied during 2016 may meet the age condition if the first invoice is issued in 2026.

This rule explains why you need to consider calendar years, rather than simply counting ten anniversaries of the date someone moved in.

The dates of invoices and advance payments

An invoice for an advance payment may matter when determining whether the age condition is met.

The date of the quotation, the contractor's agreement or the physical start of work does not automatically replace the date of the first invoice.

When the law changes during a project, you also need to consider when VAT becomes chargeable and any transitional provisions.

The main changes to know about

Four dates deserve particular attention:

• 1 July 2022: general replacement of the former renovation VAT certificate with mandatory wording on the invoice.
• 1 July 2025: the new permanent demolition and rebuilding scheme came into force, covering sales of rebuilt homes among other situations.
• 29 July 2025: the standard rate began to apply to the specified installation or replacement of fossil fuel heating systems, subject to transitional rules.
• 1 January 2026: a temporary 6% VAT scheme was reintroduced for certain heat pumps in newer homes, running until the end of 2030.

These dates explain why an old invoice, an earlier contract or information published several years ago may not establish the current rate.

How do you apply and invoice VAT at 6%?

Responsibility for applying the reduced rate is shared between the parties according to the rules laid down by law.

For a private individual, the key step is to check that the quotation and then the final invoice comply with the requirements.

Is a VAT certificate still required?

Under the ordinary renovation scheme, the customer's former VAT certificate has been replaced by statutory wording on the invoice.

Since 1 July 2022, this wording has documented the conditions concerning the age of the building, its mainly private use and the customer's status as final consumer.

A signed certificate should therefore not be presented as a compulsory document for every renovation.

Note that specific schemes, including certain demolition and rebuilding operations, may still require particular declarations or forms.

What wording must appear on an invoice at 6%?

The invoice must include the applicable statutory wording, which provides, among other things, that the customer is presumed to acknowledge the conditions of the transaction unless they object in writing within the statutory time limit.

The wording covers three points:

1. The home was first occupied in the required calendar year or earlier.
2. The building is used exclusively or mainly as a private home after the work.
3. The work is supplied and invoiced to the final consumer.

The complete statutory text, including the liability clause, is available on the official FPS Finance website and must be included as required by law. Specific wording applies to a heat pump covered by the temporary measure in a home less than 10 years old: the wording for the ordinary scheme must not simply be copied unchanged.

What should you do if the VAT on the invoice is incorrect?

If the rate shown does not match your circumstances, notify the contractor in writing.

The scheme allows one month from receipt of the invoice to object. FPS Finance recommends acting promptly, preferably keeping proof of your objection.

You should request a corrected invoice if the rate or wording needs to be amended.

Failing to object can have significant consequences: for the conditions covered by the statutory wording, the customer may have to pay additional tax, interest and penalties under the applicable provisions.

Can the same invoice include both 6% and 21% VAT?

Yes. A project may include work subject to different rates.

This is particularly important for heating installations containing components specific to fossil fuels and distribution components that may qualify for 6%.

Each service must be correctly identified and the taxable amount allocated between them.

For certain fossil fuel heating installations, FPS Finance states that if there is no clear breakdown between items at 6% and 21%, the entire invoice is subject to 21%.

You can also read our guide to invoices with multiple VAT rates.

How do you calculate VAT at 6% or 21% on building work?

Value added tax is calculated on the amount excluding VAT, also called the base amount or taxable amount.

The formula is simple:

VAT amount = price excluding VAT × VAT rate / 100

Total including VAT = price excluding VAT + VAT amount

Example: renovation costing €10,000 excluding VAT

For the same base amount, the difference is €1,500.

This reduction represents a difference of 15 percentage points in the VAT rate. It is not a 15% reduction in the original price including VAT.

Example: an invoice with two VAT rates

A contractor invoices €10,000 excluding VAT for a set of works whose components have been correctly classified:

The total invoice amount is €10,975 including VAT.

Apply each rate to the corresponding base amount rather than choosing an average percentage for the whole project.

Free VAT calculator

You can use our Belgian VAT calculator to:

• calculate a price including VAT from an amount excluding VAT;
• work out the amount excluding VAT from a VAT-inclusive price;
• compare the results at 6% and 21%;
• add together several lines with different rates;
• check the amounts shown on a quotation or invoice.

The calculator checks the arithmetic. It does not determine whether your renovation legally meets the conditions for the reduced rate.

To understand the difference between the amounts, you can also read our guide to prices excluding and including VAT.

Checklist: check the reduced rate before accepting a quotation

Before accepting a quotation or making a payment, check the following points:

• The building meets the 10-year age condition.
• The date of first occupation is known or can be substantiated.
• Private and business use have been identified; where necessary, the price of the work has been apportioned.
• The work actually relates to the private home.
• The service falls within a category eligible for the reduced rate.
• Materials bought separately have been distinguished from supply and installation services.
• Any heating installations subject to specific rules have been assessed.
• The project cannot be treated as ordinary new construction.
• The contractor invoices the final consumer directly.
• The VAT rates and amounts are correctly itemised.
• The invoice includes the statutory wording.
• The relevant supporting documents have been kept.

If you are unsure about a complex building project, seek advice from a tax professional or contact FPS Finance before confirming the VAT treatment.

Conclusion: how can you make sure you apply the right VAT rate?

The 6% rate offers a significant financial benefit when renovating a house in Belgium, but it remains subject to several conditions.

The age of the home, its private use, the nature of the work and the invoicing arrangements must all be checked together.

Before buying materials, accepting a quotation or starting a major project, take the time to check the VAT treatment of each service.

To calculate the final amount, use our online VAT calculator. For questions about whether work qualifies, consult the guidance from FPS Finance or seek advice tailored to your project.