Article by Mr Lieven Peeters and Mrs Valérie Bidoul
The definition of the concept "new building" for VAT purposes has changed. This new definition entered into force with retroactive effect until on 26 April 2002. The legislator thus tried to avoid the last-minute sales with VAT on "new buildings" applied under the old definition.
The old regime
In order to have VAT applied (instead of registration tax) to the transfer of a building or the granting of a right in rem ("real rights") on a building, certain conditions had to be met.
Amongst other conditions, the VAT Code provided that the transfer of the building had to take place at the latest on 31 December of the year following the year during which the first enrolment of the building for real estate withholding tax purposes took place. In principle, real estate withholding tax was assessed for the first time in the year following the year during which the building was used or occupied for the first time. As a result,
