New VAT Rules for Real Estate Sales 2025: Limits and Mandatory Registration

From 2025, new VAT rules for property sales in the Czech Republic apply. VAT is charged only on the first delivery of a property within 23 months of completion. After this period, the sale is VAT-exempt. If the sale is between VAT payers, they can agree to apply VAT. Unregistered entrepreneurs exceeding a turnover limit must register for VAT. The limits are 2,536,500 CZK for immediate registration after exceeding the limit, and 2,000,000 CZK for registration at the start of the next calendar year or immediately if declared. Turnover excludes advance payments, only the final sale amount counts. A significant change is effective from July 1, 2025. Entrepreneurs become VAT payers the day after exceeding the limit, not on the sale day, so the sale itself is not subject to VAT. Misleading information suggests otherwise, often due to AI-generated articles without proper oversight.

Source: pkfapogeo.cz

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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