The VAT Regime Regarding the Trading of Lands and Buildings

Lucian Cernușca
Additional contact information
Lucian Cernușca: "Aurel Vlaicu" University of Arad

CECCAR Business Review, 2023, vol. 3, issue 12, 43-54

Abstract: The article presents a series of theoretical and practical aspects regarding the application of the value added tax regime related to the trading of lands and buildings in accordance to the provisions of the Fiscal Code. The classification of a land in the available for building or with another destination category at the moment of its sale by the owner results from the urbanism certificate. If the land is not available for building, its delivery shall take place in exemption without the right of deduction regime, and if it is available for building, its sale shall be performed under normal tax regime. The delivery of constructions/ parts of constructions and of the lands on which they are built, as well as of any other lands, is VAT exempted. By way of exception, the exemption does not apply for the delivery of new buildings, parts of new buildings or lands available for building. The reduced 5% VAT rate is valid only for certain categories of buildings and by complying with strict conditions. In accordance with the provisions of the Fiscal Code, the reduced rate of 5% is applied to the taxation basis for the delivery of buildings as part of the social policy, including of the land on which they are built. As it was established by the Government Ordinance No. 16/2022, from the 1st of January 2023 we shall have only one rule regarding the application of the reduced tax rate to the deliveries of buildings to natural persons as part of the social policy. Thus, the procurement of a single building with a 5% VAT shall be allowed, individually or jointly with another natural person/other natural persons, if it has a value of maximum 600,000 Lei, VAT excluded. Considering the new provisions brought by GO No. 16/2022 regarding the application of the reduced VAT rate of 5%, the rules regarding the special register were also adapted.

Keywords: VAT; delivery; building; land; land unit; special register (search for similar items in EconPapers)
JEL-codes: K25 K34 M41 R39 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ceccarbusinessreview.ro/the-vat-regime ... -a272d/download-PDF/ (application/pdf)
https://www.ceccarbusinessreview.ro/the-vat-regime ... ings-a272a/abstract/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:3:y:2023:i:12:p:43-54

DOI: 10.37945/cbr.2022.12.05

Access Statistics for this article

CECCAR Business Review is currently edited by Robert-Aurelian ȘOVA

More articles in CECCAR Business Review from Body of Expert and Licensed Accountants of Romania (CECCAR)
Bibliographic data for series maintained by Radu CIOBANU ().