Value Added Tax Consolidation Act 2010, Schedule 3 paragraph 9B

Supply and construction of housing as part of a social policy

Paragraph 9B of Schedule 3 provides for a temporary second reduced rate of VAT (9 per cent) on the supply and construction of certain apartments and apartment blocks as part of a social policy, applying from 26 November 2025 until 31 December 2030.

• The 9 per cent VAT rate applies to the supply of qualifying apartments and apartment blocks used or to be used for residential purposes, the supply of qualifying sites, and related construction services up to the point of completion.
• A qualifying apartment block is a multi-storey building of at least two floors, comprising not less than three apartments with grouped or common access — meaning at least three apartments share a common entry point such as a main front door or shared external stairwell.
• Internal common areas, external common areas and residents' car parking spaces qualify for the 9 per cent rate, but amenities such as gyms, work hubs and pools do not; mixed buildings with both residential and commercial units require apportionment of shared areas.
• Construction services supplied after a qualifying apartment or apartment block is completed are taxed at the reduced rate (13.5 per cent), not the second reduced rate.