- From July 1, 2025, only the delivery of unfinished real estate, the first delivery of completed real estate within 23 months of completion, and the first delivery after a substantial change will be subject to VAT; all subsequent deliveries are VAT-exempt.
- Standard reconstructions or modifications (e.g., merging or dividing units, changing layouts or usage) generally do not create a “new” property for VAT purposes unless the cost of changes exceeds 30% of the property’s sale price.
- The age of the property for VAT purposes is not reset by typical reconstructions unless a substantial change occurs.
- Deliveries of units created by reconstruction are usually VAT-exempt unless it is the first delivery after completion or after a substantial change.
- Correct assessment of the extent of construction work is crucial, as misjudging a substantial change can affect VAT obligations and deduction rights; professional consultation is recommended.
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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