A new month, new opportunities! But in our country the start of a new month is usually accompanied by some new rules. Anyone who lives, purchases or renovates can also feel it again in his or her portfolio from 1 March. We will guide you through the two most important changes.
1. The new demolition and reconstruction premium
In 32 Belgian cities and municipalities it is currently possible to demolish the house and rebuild it at a reduced VAT rate of 6%. For Flanders this was the case for the central cities of Aalst, Antwerp, Bruges, Dendermonde, Genk, Ghent, Hasselt, Kortrijk, Leuven, Mechelen, Ostend, Roeselare and Sint-Niklaas. Elsewhere in Flanders you paid 21% VAT
Therefore, residents from other Flemish cities and municipalities can submit an application from 1 March for a premium of 7,500 euro for the demolition of a building in order to set up a new home. According to Flemish Minister of Finance Lydia Peeters (Open Vld), this amount should bridge the difference between 6% and 21% VAT. The premium is only valid for individuals who filed their environmental permit between 1 October 2018 and 31 October 2019. and it is paid within three months after the demolition works have been determined. The government has allocated 15 million euros, which corresponds to 2,000 projects.
2. An increase in your energy bill
Where most of us were still happy with a premium, there is also something less good to report. This way a particle of your energy bill rises. "For an average family, we see an average increase of the surcharges and public service obligations of 7 euros or 26 percent compared to March 2018", states the Vreg (The Flemish Regulator of the Electricity and Gas Market)
That does not necessarily have to be bad news, because the total annual bill for electricity would still be lower for an average family. Because the distribution grid tariffs are almost 50 euros lower than last year and there is a small decrease in the federal contribution, the Vreg speaks of 496 euros in 2019, compared to 541 euros last year.