The debate continues in the parliamentary Finance Committee on the matter concerning the targeted imposition of a reduced rate of VAT (5%) on the delivery or construction of a residence, in the context of social policy.
In the last session in which the issue was discussed, the Commission concluded to proceed with an increase in the value of the properties that fall under the reduced rate in consultation with the Ministry of Finance, subject to the agreement of the European Commission.
Also on the Committee's agenda is the Value Added Tax (Amendment) (No. 5) Law of 2019, a proposal for a law by Stefanos Stefanos, Aristos Damianos and Andreas Kavkalias on behalf of the AKEL-Left-New Forces parliamentary group, which concerns in correcting distortions and weaknesses in relation to the application of the reduced VAT rate (5%) to the delivery or construction of a residence.
Also on the agenda is the law proposal of Stavros Papadouris, MP of the Environmentalist Movement-Citizens Cooperation, which provides for the application of the reduced VAT rate of 5% for the first 180 sq.m. of buildable area, in case of delivery or construction of a house whose total buildable area does not exceed 220 sq.m., provided that the value does not exceed €300.000 for the construction of a house and €450.000 for the purchase of a house.
Besides, at the beginning of the session the committee members will be informed about the reform of the Economic Governance Framework of the European Union.
Source: KYPE