Carports associated with residential properties: when can the 5% VAT rate be applied?

NAV’s guidance published on 23 April 2026 clarifies when the 5% VAT rate may be applied to structures used for vehicle storage that are associated with residential properties.

As a general rule, garages continue not to qualify as residential property and are therefore subject to 27% VAT. However, the position regarding carports is more nuanced. Where a carport is sold together with the residential property and, based on its technical characteristics, does not qualify as a room but as a space partially enclosed by building structures, the 5% VAT rate may be applicable under certain conditions. Certain other spaces may also be invoiced at 5% VAT.

Practical takeaway: It is not sufficient to consider whether the structure is described as a “garage”, “carport” or “parking space”. The VAT treatment is determined jointly by the technical design, legal classification, method of sale, and floor area calculation.

It is therefore advisable for those selling, purchasing, pricing, invoicing or classifying carports associated with new residential properties to review their previous VAT treatment practices.

Should you have any questions regarding the applicability of the 5% residential VAT rate, the tax classification of the relevant parts of the property, or the tax risks associated with invoicing and pricing decisions, please feel free to contact the Niveus tax experts.

Should you have any questions, please feel free to contact Niveus’s experts.