What are the new VAT rules on property transactions?
Exempt supplies
The following supplies are exempt:
(a) undeveloped land,
(b) immovable goods (land or buildings) where the most recent development was more than five years before the supply,
(c) a completed property occupied for at least 24 months since its most recent development, where a taxable supply has occurred since that development between unconnected persons,
(d) a property completed more than five years before the supply, provided only “minor” work was carried out before the supply, i.e., work which does not adapt the property for materially altered use and the cost of which does not exceed 25% of the sale price.
A person making an exempt supply of property, may, together with the acquirer of the property, make a joint option for taxation. In such a case, the acquirer is accountable for the VAT.