In the Official Gazette (Part I) no. 1107 of 17 November 2022 was published Law no. 301 of 2022 for the approval of Government Emergency Ordinance no.31/2019 on the granting of certain tax facilities and for the amendment and completion of Law no.227/2015 on the Tax Code, for the completion of Government Emergency Ordinance no.11/2018 for the adoption of certain budgetary measures and for the amendment of Framework Law no.153/2017 on the salary of personnel paid from public funds.
According to the normative act, the supply of social housing is invoiced with a VAT rate of 5%. One of the conditions of substance and form is that the housing can be “lived in as such” at the time of sale.
It should be noted that in some tax inspection cases the VAT rate applicable was reclassified because the phrase “habitable as such” was personally interpreted by the inspection teams as meaning that the dwelling had to have certain facilities not provided for in the law in order to be habitable as such.
Thus, Law 301/2022 regulates the official definition of the term “inhabited as such” and presents the elements that must be followed and fulfilled by a dwelling in order to apply the 5% VAT rate.
The 5% VAT rate will be applied if the dwelling meets the following cumulative conditions:
- the house has access to electricity and drinking water;
- there is a sewage and domestic waste disposal system;
- there is at least one sleeping space;
- there is at least one food preparation area and one sanitary facility regardless of the level of finishing at the time of delivery.