Property rule changesOur publication on the new VAT rules on property transactions |
After more than two years in the making, the new rules for VAT on property transactions came into effect on 1 July 2008. The new rules represent a fundamental change to the way property transactions are treated for VAT purposes. Please see our publication New rules for VAT on property for an overview of the new rules.
The new rules have not reduced the complexity and difficulty involved in assessing the VAT status of a property transaction. In this regard, the Law Society has issued new VAT inquiries to be completed for the sale of each property; these run to 14 pages, whereas previously there were two pages.
The message is that, whether you are a vendor or purchaser, you need to be very careful due to the VAT risks and costs associated with property and it is critical that you establish the VAT status of a property before signing the contract.
For further information on this matter please do not hesitate to contact a member of the VAT team.
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