Transactions of property dealers – Buildings completed more than 5 years ago leased with VAT – Timing of VAT recovery – assimilation regime

In principle, a property trader cannot deduct the VAT on the acquisition of a building completed more than 5 years before the resale of the building, subject to VAT on the option exercised by the property trader.

This solution results from case law of the Council of State initiated by the “Lips” decision ( CE November 27, 2020, 9th and 10th ch. combined, n° 426091, “Mentioned at the tables of the Lebon collection”, SNC Lips ) (see our previous comment )

Source Taximmo

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