The Emergency Ordinance (OUG) no. 130/2021 regarding some fiscal-budgetary measures, the extension of some deadlines, as well as for the modification and completion of some normative acts was published in the Official Gazette no. 1202 of December 18, 2021.
According to the normative act, starting with January 1, 2022, the ceiling for the reduced VAT rate in case of sale of homes is increased under certain conditions, from 450,000 lei to 700,000 lei.
Thus, the reduced VAT rate (5%) is applied on the tax base for: the delivery of homes with a usable area of maximum 120 sqm, excluding household annexes, whose value, including the land on which they are built, does not exceed the amount of 450,000 lei, excluding value added tax, purchased by individuals.
We specify that the usable area of the house is the one defined by the Housing Law no. 114/1996, republished, with the subsequent modifications and completions:
- the useful surface is the developed surface, less the surface afferent to the walls.
- the usable area of the house is the sum of all the usable areas of the rooms. It includes: living room, bedrooms, bathrooms, toilet, shower, kitchen, storage and circulation spaces inside the house.
They do not include: the surface of the loggias and balconies, the thresholds of the door openings, of the passages with openings up to 1.00 m, the niches of radiators, as well as the surfaces occupied by stoves and bath boilers (0.50 m2 for each stove and bathroom boiler), if the heating is done with stoves. In the case of duplex homes, the ramp, except the landings, is not included in the usable area of the home.
The household annexes are those defined by Law no. 50/1991 regarding the authorization of the execution of the construction works, republished, with the subsequent modifications and completions.
Thus, the household annexes are the constructions with definitive or provisional character, meant to shelter specific activities, complementary to the housing function, which, by being located in the vicinity of the dwelling, together form a distinct functional unit.
In the category of household annexes, usually in rural areas, are included: summer kitchens, stables for large animals, beds, warehouses, warehouses and the like, are similarly similar to the notion of household annexes and garages, greenhouses, swimming pools and others. also.
The reduced rate applies only to homes that can be inhabited as such at the time of delivery.
The reduced rate of 5% also applies to the delivery of homes that have a usable area of maximum 120 sqm, excluding household annexes, whose value, including the land on which they are built, exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei, excluding value added tax, purchased by individuals individually or jointly with another individual / other individuals.
The useful surface of the house is the one defined by Law no. 114/1996, republished, with the subsequent modifications and completions (detailed above). The household annexes are those defined by Law no. 50/1991, republished, with subsequent amendments and completions (mentioned above).
The reduced rate applies only to homes that can be inhabited as such at the time of delivery.
Thus, any natural person can purchase, starting with January 1, 2022, individually or jointly with another natural person / other natural persons, a single home whose value exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei , excluding VAT, with a reduced rate of 5%.
Moreover, through the amendments brought by OUG 130/2021, the “Register of housing acquisitions with a reduced VAT rate of 5%” is organized, in electronic format, based on the information from the legal documents between living persons whose object is the transfer of the right to property for the dwellings provided in paragraph (3) letter c) points 3 and 5, authenticated starting with January 1, 2022.
It is important to note that notaries public have an obligation:
- to verify the fulfillment of the condition regarding the acquisition of a single dwelling whose value exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei, excluding VAT, with a reduced VAT rate of 5%, by consulting the “Register of quota acquisitions reduced by 5% VAT ”, before the authentication of legal documents between living persons whose object is the transfer of ownership or payment in advance for the purchase of such a home and, if it finds that this condition is not met, to authenticate them only if the delivery is made with the standard VAT rate;
- to complete the “Register of housing acquisitions with a reduced VAT rate of 5%”, on the date of authentication of legal documents between living persons having as object the transfer of ownership for the dwellings provided in paragraph (3) letter C points 3 and 5;
- to enter in the legal acts between living persons whose object is the transfer of the property right or the advance payment for the acquisition of a house provided in paragraph (3) letter c) point 5 mentions regarding the observance of the obligations provided in letter a) and, after case, letter b);
- to enter in the legal acts between living persons having as object the transfer of the property right for the dwellings provided in paragraph (3) letter c) point 3 mentions regarding the observance of the obligation provided in letter b);
- to enter in the legal documents between living persons whose object is the transfer of ownership or advance payment for the dwellings provided for in paragraph (3) letter c) points 3 and 5, the VAT rate applied, regardless of whether the VAT is applied to the price or is included in the price.
Legal basis:
– Law no. 50/1991 regarding the authorization of the execution of construction works – Republishing *), with the subsequent modifications and completions;
– Law no. 114/1996 HOUSING LAW – Republishing, with subsequent amendments and completions;
– OUG 130/2021 regarding some fiscal-budgetary measures, the extension of some terms, as well as for the modification and completion of some normative acts.