Sale Of Real Estate And Applicable VAT

The new VAT rules on the sale of property have been in force for over a year. However, these have yet to gain wide acknowledgement and mistakes are often made when applying the rules. The obligation to pay VAT should not be overlooked when buying or selling real estate. Moreover, all notifications should be timely submitted: mistakes may be costly. For these reasons we will point to some of the main aspects of the new rules.

In April 2012 amendments to the Value Added Tax Act came into force establishing a reverse charge mechanism on taxation of real estate for which inclusion of VAT is voluntary. VAT...