- The General Financial Directorate (GFŘ) published new guidelines on VAT application to real estate effective from July 1, 2025, reflecting major legislative changes.
- The main impact is a new approach to VAT exemption for property sales and the classification of land as building land.
- The law now distinguishes between the first supply of selected real estate (taxable) and subsequent supplies (exempt), with detailed criteria for what constitutes a building and a functional unit of land and building.
- Special attention is given to cases like mobile homes, land with building foundations, and land with buildings intended for demolition.
- The definition of building land is expanded to include land designated for construction by planning or actual preparatory work, not just land with a building permit.
Source: danovky.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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