Impact to focus on housing falling within the 5% VAT ceiling

by   CIJ News iDesk V
2021-01-12   10:57

Impact Developer & Contractor has announced that it will rethink the construction strategy for the projects it will develop in the future and will reorient to smaller homes, following the Government's decision to postpone until January 1, 2022 of the entry into force of the measure regarding the increase to 140,000 euro of the ceiling for the application of the reduced VAT rate of 5% for dwellings that have a usable area of maximum 120 sqm.

“We will have to rethink the construction strategy for the projects we will develop in the future. We will focus on smaller units, which fall within the 5% ceiling, because we do not want to lower the construction quality standard and we do not have the guarantee of applying the new VAT ceiling in 2022 ", said Sorin Apostol, CEO Impact Developer & Contractor. He expects many of those driven to buy with the 5% VAT to postpone the purchase decision.
At the moment, Impact is developing 4 projects in 3 major cities of the country: Bucharest, Constanța and Iași.