VAT on business, professional and commercial real estate
What is the VAT on commercial, professional, and business real estate?
Who is affected by the VAT on commercial, professional, and business real estate?
Can the VAT on commercial, professional, and business real estate be optimized?
Why hire a tax attorney specializing in real estate VAT?
What is VAT on business, professional and commercial real estate?
The VAT on commercial, professional, and business real estate is the Value Added Tax potentially applicable to real estate transactions carried out by businesses. The standard VAT rate applicable to real estate transactions is 20%. The applicable real estate VAT regime may vary depending on the type and nature of real estate transactions: purchase, sale, lease.
Who is affected by 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, 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.
Can we optimize VAT on business, professional and commercial real estate?
VAT on commercial, professional, and business real estate deserves special attention to avoid becoming an unjustified burden for the taxpayer. Thus, when carrying out a real estate transaction by a company, it is necessary to anticipate the tax consequences regarding real estate VAT in order to make the right tax choices. Anticipating the taxation of its operations can allow the company to optimize its taxation.
Why call on a tax lawyer expert in real estate VAT?
The VAT applicable to commercial real estate is highly complex. Errors made in real estate VAT can lead to numerous tax audits and have significant financial consequences for businesses.
The tax lawyers at LEXPERTAX assist businesses in securing and optimizing the VAT regime on commercial, professional, and business real estate. We advise you on the best strategies in real estate VAT to optimize the taxation of your transactions.
VAT Real estate promotion
Real estate development involves producing real estate assets intended for sale. Real estate development primarily entails the construction and sale of real estate. Therefore, the construction and sale of real estate assets are subject to the rules governing value-added tax: real estate VAT…
VAT Goods dealer
Real estate trading involves purchasing real estate, either in one’s name or through a company, and reselling it to make a profit.
To enhance profit margins, real estate traders may employ various strategies, such as purchasing a building and subdividing it into lots for separate resale, or renovating real estate to increase its value before selling…
VAT Construction-sale
The VAT on construction-sale is the value-added tax applicable 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 different 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 professional real estate purchase or sale, intended for the use of the company or for rent, the company must pay special 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 historical monuments or classified buildings, can 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 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…