- An Israeli district court held that full VAT applies to the sale of a Tel Aviv building owned by Twenty Four Seven International Holdings LLC.
- The company had claimed input VAT recovery at purchase in 2008 based on an intention to quickly resell, but instead rented the property for eight years before selling it in 2016.
- The court rejected the company’s attempt to retroactively undo the earlier VAT refund to avoid VAT on the sale.
- Israeli law allows input VAT recovery for taxable activities, while long-term residential rental (up to 25 years) is VAT-exempt; the court said the prior VAT treatment could not be changed after the fact.
Source: ua.news
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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