8% VAT on home renovations — who is eligible and how to qualify

Not every renovation must be subject to 23% VAT. Under certain conditions, a contractor can apply an 8% rate — which results in real savings on your invoice. ## Requirements for the 8% rate - Residential property: an apartment or house up to 150 m² of usable floor space (the total area of the unit, not just the renovated room). - Building age of at least 5 years — calculated from the date of occupancy. - Modernization services: painting, tiling, flooring, installations, and joinery replacement. ## When the 8% rate does not apply - Buildings and apartments larger than 150 m². - Buildings less than 5 years old. - Pure construction works (e.g., extensions). ## How to handle it 1. Inform your contractor that you require an invoice with 8% VAT — they will request documentation. 2. Prepare proof of the floor area and building age (extract, deed, certificate). 3. Sign the declaration requested by the contractor. Note: It is the contractor who decides on the tax rate based on the documents — you are not buying a lower VAT rate, but providing the conditions for verification. For a renovation costing £10,000, the difference is £1,500. Ask about the 8% rate before you sign the contract — companies from LocalTrader are familiar with these rules and will assist with the documentation.