Reduced 5.5% VAT rate on construction and renovation of social housing

The 2014 Finance Act lowered from 7% to 5.5% the VAT rate on deliveries and self-deliveries of social rental housing (article 278 sexies of the General Tax Code), instead of the increase to 10% scheduled for 1 January 2014. It also created a reduced rate for certain renovation works on such housing (energy savings, accessibility, compliance, safety). The bill proposed 5%; the rate adopted was 5.5%. The 7% rate remained applicable on a transitional basis for some operations started before 31 December 2013.