New VAT Rules for Buildings in Czechia: 23-Month Tax Window and First-Supply Rule Explained

• VAT applies to buildings for 23 months after completion; after that, transfers are VAT-exempt unless it is the first supply.
• The 23-month period starts when the occupancy permit is final or the building is used permanently.
• Only the first transfer after completion or major change is taxable; later transfers are exempt unless another major change (>30% of tax base) occurs.
• 12% VAT rate applies to housing/social housing (≤350 m² house, ≤120 m² apartment); larger units use the standard VAT rate.

Source: leitnerleitner.com

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.

---

---