5.5% VAT extended to social housing acquired and converted with a social rental loan

Article 32 of the 2022 Finance Act extends the reduced 5.5% VAT rate applicable to acquisition-improvement of social housing financed by PLAI or PLUS loans to operations financed by a social rental loan (PLS) where the works convert premises not previously used as housing into social rental housing (Articles 278 sexies and 278 sexies A of the General Tax Code). It also covers self-supplies of social housing restored to new condition. The measure applies to operations whose taxable event and loan decision occur from 1 January 2022.