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VAT Real estate promotion

What is VAT on real estate development operations?

How is VAT applied to real estate development operations?

Who is affected by VAT on real estate development operations?

Tax lawyer specializing in real estate VAT

What is VAT on real estate development operations?

Real estate development involves producing real estate properties intended for sale. Therefore, real estate development primarily constitutes the construction and sale of real estate properties. Also, the construction and sale of real estate properties fall under the rules governing the value-added tax (real estate VAT).

How is VAT applied to real estate development operations?

The rules for applying real estate VAT on real estate development operations may vary depending on several parameters: the nature of the project, type of construction, intended use of the premises, profiles of future buyers…

Also, beyond the methods of determining the taxable base, there are also several real estate VAT rates that can vary depending on the situations.

Who is affected by VAT on real estate development operations?

VAT on real estate development operations primarily concerns professionals in the real estate sector, such as real estate developers. However, in some cases, real estate VAT may also concern individuals depending on the nature and type of operation carried out. In these conditions, it is important to monitor and anticipate the tax consequences of these operations to avoid the risk of adjustment.

Tax lawyer expert in real estate VAT

The tax lawyers at LEXPERTAX assist businesses and individuals in all aspects of real estate VAT. We advise you on the best strategies in real estate VAT to optimize the tax aspects of your operations.

TVA Promotion immobilière

L’activité de promotion immobilière consiste à produire des biens immobiliers destinés à être vendus. La promotion immobilière consiste donc principalement en une activité de construction-vente de biens immobiliers. Aussi, l’activité de construction-vente de biens immobiliers est concernée par les règles régissant la taxe sur la valeur ajoutée : TVA immobilière…

VAT Goods dealer

The activity of a property dealer involves buying real estate, either in their name or through a company, and reselling it for a profit.

To improve their margin, a property dealer may use various strategies, such as purchasing a building and then dividing it into lots for separate resale, renovating real estate to increase its value for sale, etc.

VAT Construction-sale

The VAT on construction and sale is the value-added tax applicable to real estate construction operations with the intention of resale. The VAT rate applicable to this type of real estate transaction is normally the standard rate. However, it can vary depending on various parameters, such as the type of operation and the profiles of the buyers…

VAT on business, professional and commercial real estate

Real estate held professionally by a company, whether it is a civil or commercial activity, may be subject to real estate VAT.

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 special attention to the application of the VAT.

Thus, certain 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 carried out by professionals, such as the restoration of historic monuments or classified buildings, may undergo a complex tax regime at the time of resale due to an interweaving of various tax regimes that may apply. The real estate VAT applicable to this type of real estate transaction may then appear complex to determine. The inherent tax complexity of certain real estate transactions may arise 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, etc.) by ventilating its real estate transaction based on…