Preferential 7-percent VAT for houses saved

PB
opublikowano: 2007-09-06 10:31

Homebuilders welcomed the news that Sejm, the lower chamber of Parliament approved of the changes of VAT law. On January 1st 2008, the preferential 7-percent VAT rate will be applicable for flats up to 150 square meters and houses up to 300 square meters bought from homebuilding companies. Without these changes, the rate would grow to 22 percent.

“Finally, the situation is normal. It was a scandal to lead to a situation when everything was vague”, Jacek Bielecki, general director of the Polish Association of Homebuilders said.

“We have managed to avoid a disaster. Without this law, we would have a boom in the last months of this year, and then a big drought. In result, the market would face turmoil”, Pawel Majtkowski from Expander consulting company added.

The 7-percent VAT rate will also cover flat and house modernization. Part of expenditures for construction materials will also be taxed with 7 percent. After Sejm, it is time for Senate to approve of the amendment. Senate members will discuss it on September 13th.