Tax Reform & Engineering Economics · October 16, 2026 · 6 min read
Condominium Management and the Tax Reform: Procurement of Building Maintenance, Security, and Facilities
Residential and commercial condominiums operate legally as end-consumers. Under the Dual VAT overhaul, facility directors and property managers must understand how tax restructuring influences recurring service agreements.
1. Condominiums as End-Consumers
Because condominiums do not sell commercial goods or taxable services, they accumulate no downstream VAT liabilities against which to offset input taxes. Taxes applied to vendor invoices directly impact condominium fee calculations.
2. Evaluating Vendor Price Readjustment Requests
Service providers handling janitorial, security, and electromechanical maintenance will adapt contracts across the 2026-2033 phase-in. Property boards require independent engineering audits to review price renegotiations.
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