How much VAT applies to a dormer?
The standard rate is 21% VAT on materials and labour. For homes older than 2 years a reduced rate of 9% applies on the labour hours (not on materials) — this falls under the regulation for renovation and repair of existing dwellings. Ask the builder to itemise VAT on the invoice.
9% on labour for older homes
The Dutch tax authority applies a reduced VAT rate of 9% on labour hours for renovation and repair work on dwellings older than 2 years. This also applies to placing a dormer. The 9% rate applies only to labour, not to materials — those remain 21%.
How does this appear on the invoice?
A correct invoice splits the two items separately: materials (21%) and labour (9%). If you receive a lump-sum without breakdown, you can still ask for it. Without breakdown you cannot demonstrate the reduced rate in any audit.
New-build: 21%
For homes delivered less than 2 years ago the 9% rate does NOT apply. The full amount (materials and labour) is then taxed at 21% VAT.