Real estate VAT recovery
What is the recovery of real estate VAT?
Who is concerned with the refund of real estate VAT?
How to get a refund of real estate VAT?
Tax lawyer expert in real estate VAT recovery
What is real estate VAT recovery?
The recovery of real estate VAT involves being reimbursed by the State for a VAT credit identified during the realization of a real estate transaction.
This can include operations such as real estate construction, buying and selling of real estate, real estate works, or even real estate leasing operations.
Who is affected by the real estate VAT refund?
The refund of real estate VAT can concern both businesses and individuals. Indeed, businesses, especially in the real estate sector, such as developers or property dealers, are primarily concerned with issues related to the refund of real estate VAT. However, individuals can also, in certain cases, be concerned with the refund of real estate VAT, for example, in the context of certain real estate investment or tax incentive schemes: LMNP, Censi-Bouvard, etc.
How to get a real estate VAT refund?
In order to recover VAT on a real estate transaction, it is necessary to fulfill a certain number of conditions and commitments that vary depending on the nature of the real estate transaction (construction-sale, purchase-sale, rental…) and the person conducting the transaction (company, individual). Also, given the complexity of certain transactions, it is important to seek the assistance of a tax lawyer specializing in real estate VAT.
Tax lawyer expert in real estate VAT recovery
Tax lawyers from the LEXPERTAX firm assist both companies and individuals in the recovery of real estate VAT. We provide advice on the best strategies in real estate VAT to optimize the taxation of your transactions.
VAT Real estate promotion
The real estate development activity consists of producing real estate properties intended for sale. Real estate development primarily involves the construction and sale of real estate properties. Also, the activity of construction and sale of real estate properties is subject to the rules governing the value-added tax: real estate VAT…
VAT Goods dealer
The business of a real estate dealer involves purchasing real estate, either in one’s own name or through a company, and reselling it to make a profit.
To enhance profitability, a real estate dealer may employ various strategies, such as purchasing a building and subsequently dividing it into lots for separate resale, or renovating real estate properties to increase their value before selling.
VAT Construction-sale
The value-added tax (VAT) on construction-sales is the tax applied to the construction of real estate properties for resale. The VAT rate applicable to this type of real estate transaction is normally the standard rate. However, it may vary depending on various parameters, such as the type of transaction and the profiles of the buyers…
VAT on business, professional and commercial real estate
Real estate held for professional purposes by a company, whether it is a civil or commercial activity, may be subject to real estate VAT.
Indeed, whether it is a professional real estate purchase or the sale of professional real estate, intended for the use of the company or for rent, the company must pay particular attention to the application of the VAT regime.
Thus, some real estate transactions may fall within the scope of VAT, while others may be outside the scope or exempt from VAT, sometimes with possible option mechanisms.
Real estate VAT and complex transactions
Certain real estate transactions conducted by professionals, such as the restoration of historic monuments or classified buildings, may be subject to a complex tax regime at the time of resale due to a tangle of various tax regimes that may apply. The real estate VAT applicable to this type of real estate transaction can then appear complex to determine. The tax complexity inherent in certain real estate transactions may stem from the fact that the company will sometimes have to take into account several real estate VAT regimes (VAT on new construction, VAT on buildings over 5 years old, different VAT rates…) by ventilating its real estate transaction accordingly.