Major VAT Changes for Building Plots: New Definition and Court Ruling Effective July 1, 2025

• From July 1, 2025, the definition of a “building plot” for VAT purposes in Czech law changes significantly.
• Previously, a plot was considered “building” if there was both an intention to build and construction or administrative actions related to building.
• The Supreme Administrative Court (NSS) ruled that only plots meeting both conditions were subject to VAT; otherwise, sales were VAT-exempt.
• Under the new law, any plot designated as buildable in planning documents is considered a building plot for VAT, regardless of the owner’s intentions.
• Exceptions apply only if it is clear the plot cannot or is very unlikely to be built on.

Source: accace.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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