Sale of real estate – VAT consequences

Jowita Pustu³ ()
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Jowita Pustu³: Uniwersytet Jagielloñski, Zak³ad Prawa Finansowego, J.Pustu³, M.Przywara Doradztwo podatkowe S.C.

World of Real Estate Journal (Swiat Nieruchomosci), 2013, issue 85, 28-33

Abstract: Should the sale of a real estate be treated as a VAT taxable transaction or as a transaction which is exempt from VAT ? The answer to this question is crucial not only for a property seller, but also for an acquirer. If it turned out that the seller wrongly assumed that the transaction was exempt from VAT , tax arrears would arise and he would have to settle the arrears with penalty interest. However, if he wrongly treated the transaction as VAT taxable, the acquirer would be put at tax risk. According to Article 88 section 3a point 2 of the VAT Act, the taxpayer is not allowed to deduct input tax if a transaction was not taxable. In this article the basic principles of VAT taxation applicable in the sale of real estate process were discussed.

Keywords: sale; real estate; VAT; taxable transaction; exemption; tax (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:kra:journl:y:2013:i:85:p:28-33

DOI: 10.14659/worej.2013.85.04

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