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Ruling: VAT on the sale of real estate by an individual

  • The text is a letter regarding the interpretation of VAT on the sale of real estate by an individual.
  • The letter confirms the correct interpretation of the tax consequences for the sale of a developed plot of land and the inability to apply VAT exemption for the sale of an undeveloped plot.
  • The request for an individual interpretation was submitted on September 29, 2023, and the letter provides a description of the factual situation and future events related to the sale of the property.
  • The property in question was originally part of a larger agricultural farm that was gifted to the recipient by their father in 1994.
  • The farm was divided in October 2006 due to the construction of a highway, resulting in two remaining plots of land: one developed and one undeveloped.
  • The construction of the highway rendered the land unsuitable for agricultural use, and a new local spatial development plan changed the land’s designation to industrial and residential use.
  • In 2008, the recipient further divided the developed plot into a residential-commercial area and an industrial-commercial area, selling the undeveloped plot.
  • The letter references a previous tax interpretation obtained by the recipient for the planned transaction.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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