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A disabled consultant asks whether the 4% reduced VAT rate applies to purchasing a price-limited home. The DGT responds that disability does not matter and that the 4% reduced rate only applies to officially protected housing under special regime, public promotion, or meeting those criteria.
Question raised: Applicable tax rate for the delivery of the aforementioned housing.
The 4% VAT rate applies to social housing of a special regime, public promotion, or with public protection that does not exceed the surface area, price, and income parameters of the former. The disability of the acquirer is not relevant for determining the applicable tax rate. If the housing is of public protection but of limited price according to regional regulations, the 4% rate does not apply, but rather the 10% VAT rate.
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