VAT legislation returned to the Parliament for reconsideration
The President of the Republic returned the “Value Added Tax (Amendment) (No6) Law of 2011” to the Parliament for reconsideration, exercising the right vested to him by the provisions of Article 51.1 of the Constitution. It is reminded that, according to the said Law, a reduced VAT of 5% is applied to the construction of housing. The Law had been approved by the plenary of the House on 26 August 2011, as part of social policy. However, the plenary session of the House on 22/9/2011, persisted on its first decision and rejected the return of the said Law. As a result, the Law shall be promulgated by publication in the official Gazette of the Republic. It should be noted the Law was amended by the Parliament and it now provides that property units up to 275 m² (instead of 300 m²) are eligible for 5% VAT, but again only for the first 200 m².