According to Law No. 296/2023, the tax regime for the supply of social housing was changed in the sense that the sale of these categories of housing, when they are new buildings, is carried out at the VAT rate of 9%, when the sale takes place after January 1, 2024, and the beneficiaries are individuals persons

Another change to the provision of social housing is the clarification of the phrase “fit for habitation as such”, which defines the qualities that the relevant housing must meet in terms of separation from third parties, the availability of a place for recreation and premises for food production. , availability of sanitary installations and access to the sewage system, availability of doors, windows and other similar elements, etc.

The legislator limited the possibility of an individual or family to purchase a single social housing at a preferential VAT rate of 9%, if the purchase takes place after January 1, 2024.

As formulated by law, the possibility of purchasing separate housing at a preferential VAT rate is not taken into account if the same individual purchased another social housing at a preferential VAT rate by December 31, 2023.

In order to track transactions for the sale of social housing with a reduced VAT rate, the Register of acquisitions of housing with a reduced VAT rate is being updated, which can be used from January 1, 2024, in which state notaries certifying the exchange of ownership of social housing will register persons who will purchase social housing housing at a preferential VAT rate.

The persons who have the right to fill in this register are notaries who must fill in details the identification data of the buyers, the identification data of the seller, the identification data of the home address, the number and date of the transfer of ownership document, the taxable value of the home, the identification data of the notary before whom the transfer of ownership.

The public notary is obliged to check the data entered in this register, and before certifying the contract on the transfer of ownership, he must make sure that the value of social housing excluding VAT does not exceed the amount of 600,000 lei.

After entering entries into this register, the computer system issues a certificate of fulfillment of the notary’s duty to enter the entry, which is archived together with the documents of the relevant deed.

Remember: the regulatory act also provides for the application of a fallback measure to maintain the preferential VAT rate of 5% in 2024, if “inter-residential” contracts are concluded by December 31, 2023, according to which the advance is paid in full or in part this year. , for the delivery of social housing in 2024. The regulatory framework regulates obtaining this information from the current Register of social housing.

N.Red: Adrian Benza is a tax consultant and a longtime employee of HotNews.ro