- Czech Financial Administration clarified VAT rules on real estate effective July 1, 2025.
- Key real estate taxation concepts redefined and aligned with EU case law.
- Broader VAT exemptions for transfers of completed property; VAT applies only to first supplies within 23 months of completion or substantial change.
- “Substantial change” now defined as construction altering use or living conditions, with costs over 30% of the tax base.
- New classifications introduced for residential and social housing buildings.
Source: news.bloombergtax.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.
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