Real Estate and Value Added Tax (Part 1): VAT Design Options for Real Estate Transfers

• Value added tax (VAT) and real estate are complex topics in consulting
• Three ways to handle VAT in the sale of real estate: exempt from tax, voluntarily taxed, or through a reporting procedure
• Selling real estate as exempt from tax means no VAT is triggered, but the seller must adjust for any previous VAT deductions
• Example: a company selling a property used for business purposes must adjust VAT deductions when selling as exempt from tax
• The buyer takes over the property after the sale

Source: primetax.ch

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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