New VAT Rules for Real Estate Sales: Key Changes Effective from 2025

Starting in 2025, VAT will apply only to the first supply of real estate within 23 months of completion. After this period, the supply is VAT-exempt. If a non-VAT registered entrepreneur sells a property and exceeds the turnover threshold, they must register as a VAT payer. The thresholds are CZK 2,536,500 for immediate registration and CZK 2,000,000 for registration the following year. Turnover excludes advance payments. An entrepreneur becomes a VAT payer the day after exceeding the threshold, not on the sale day, so the sale itself is not subject to VAT. Misinterpretations have incorrectly suggested VAT applies on the sale day.

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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