Change in Deducted VAT Adjustment for Investment Property Starting 2025

• From January 1, 2025, a significant amendment to the VAT law changes the rules for adjusting deducted VAT on investment property.
• The new legislation aligns with the European Council Directive 2006/112/EC and practical requirements.
• The definition of investment property and rules for adjusting deducted VAT on it are changing.
• The period for adjusting deducted VAT starts from the first actual use of the investment property.
• The adjustment period is 5 years for movable and intangible assets and 20 years for real estate and its modifications.
• The adjustment period begins in the year of first use, including that year.
• The amendment introduces a new provision for the adjustment period in § 52a of the VAT law.
• Changes apply to the purpose of use, extent of use of real estate, and extent of use of movable and intangible investment property.
• For investment property delivered before first use, new rules apply for VAT adjustment.

Source: podnikajte.sk

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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