The head office of the DPS in Kyiv informs that operations for the supply of housing (residential real estate objects), indivisible residential object under construction/future residential real estate object, except for the first supply of such objects, are exempt from VAT taxation.
Such a norm is provided for in para. 197.1.14 clause 197.1 of Art. 197 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI.
The first supply of housing (a residential real estate object) means:
a) the first transfer of ready, newly built housing (a residential real estate object) to the ownership of the buyer or the supply of services (including the cost of materials purchased at the expense of the contractor) from the construction of such housing at the expense of the customer;
b) the first sale of a reconstructed or overhauled housing (a residential real estate object) to a buyer who is a person other than the owner of such an object at the time of its decommissioning (use) in connection with such reconstruction or overhaul, or the supply of services (including the cost of materials purchased at the contractor’s expense) for such reconstruction or overhaul at the customer’s expense.
The first supply of an undivided residential object under construction/future residential real estate means the first transfer of a special property right to the relevant object to the buyer under the contract of sale of an undivided residential object under construction/future residential real estate (first sale ) from the construction customer/construction developer, under which a special property right to the relevant object is registered.
Norms of paragraphs 197.1.14 clause 197.1 of Art. 197 of the Civil Code also apply to the first sale of summer cottages or garden houses, as well as any other property registered according to the law as housing (residential real estate object).
Transactions on the first supply of affordable housing and housing that is built with the involvement of state funds are exempt from taxation.
Source: gov.ua
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