Are transfers of real estate subject to VAT? How much? Who is liable? Are there any exemptions?
Transfers of real estate are subject to VAT if the seller is a VAT-payer.
VAT is charged at the rate of 20% on the transfer value.
VAT is collected from the buyer and is payable to the state budget by the seller.
Sale/transfer of land plots and land shares (except for land plots located under VAT-able real estate and included into the sale value of such real estate) are exempted from VAT.
In real life, not all sellers are VAT-payers, which also makes transactions VAT-exempted. For instance, the following categories of persons may not be or may not necessarily opt to be VAT-payers:
- individuals – never;
- users of a simplified tax system (private entrepreneurs or resident legal entities) if they opt so;
- users of the general tax system (private entrepreneurs or legal entities) – until threshold for mandatory VAT registration is met.
For those who are buying a flat, house or land plot in Lviv
This Package Includes
- one hour consultation
- due diligence of selected property
- bilingual sale-purchase contract
- deal signing and closing
Still have any questions?