- The Ministry of Finance has issued a new version of the VAT Decree for immovable property, updating many parts to align with current case law. The new decree will take effect on January 1, 2024, with some transitional rules. It’s important to note that the decree reflects the interpretation of the State Secretary of Finance and is not binding on taxpayers.
- Key changes include the treatment of service costs, where the distinction between residential and commercial real estate has been removed. The rental of non-integrated solar panels is now considered an additional service, while integrated solar panels are exempt from VAT. Landlords who deducted VAT on solar panels before 2023 may continue to regard the rental of solar panels as a separate VAT-taxed supply.
- The new decree also allows for retroactive VAT-taxed rental in certain situations, without a limit on the period for retroactive effect.
Source BDO
