Ruling: VAT settlement in connection with the sale of real estate immediately after its lease

1. Should the provision of rental services and the sale (delivery) of real estate by the Applicant to the Buyer in the circumstances described in the application be treated as separate provision of services for remuneration and supply of goods for remuneration within the meaning of the VAT Act?

2. In a situation where, immediately after the end of the lease agreement, an agreement is concluded transferring the ownership of the property that was previously the subject of the lease, should the delivery of goods be recognized at the moment of concluding the agreement transferring the ownership of the property to the Buyer?

3. Is the input tax deducted by the Applicant from invoices documenting the purchase of goods and services related to the construction of the building in question subject to annual adjustment on the principles set out in Art. 91 section 7a of the VAT Act in connection with a change in the purpose of the building, i.e. from intended for sale subject to VAT for the purposes of tax-exempt sales (lease of a residential building for residential purposes of a natural person)?



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