For renovation work on private residences older than 10 years, your customer is entitled to a reduced VAT rate of 6%. This must be stated on the invoice using the standard statement 'VAT Declaration for Renovation'.

The statement placed on the invoice is:

VAT Rate: In the absence of written dispute within one month of receiving the invoice, the customer is deemed to acknowledge that

1. the work is carried out on a property where the first use occurred in a calendar year that is at least [fifteen or ten] years prior to the date of the first invoice related to that work,

2. the property, after completion of the work, is used exclusively or primarily as a private residence, and

3. the work is provided and invoiced to an end user.

If any of these conditions are not met, the standard VAT rate of 21% will apply, and the customer will be liable for payment of the tax due, as well as any interest and penalties.

By activating the “VAT Declaration for Renovation” module on the “Modules” page, the statement will automatically appear on the invoice.

Activating this module is only possible with a Pro subscription or higher.

Watch the video below to see how to activate the 6% VAT Declaration for Renovation and how it appears on the invoice.