A circular decision by the Administrator of Independent Authority of Public Revenues (ΑΑΔΕ) was recently published with directions for the application of the VAT suspension on real estate properties, which are defined as “new”, viz. properties with building permits issued after 1st January 2006.
The application for the tax exemption is submitted to the competent IRS by the taxpayer, viz. the construction company. This application, which corresponds to each taxpayer and not each property, shall mention all the properties belonging to the contractor or the construction company which have not been sold or exploited.
The deadline for the above submission is six (6) months from the issue date of the building permit. It is noted that, for the building permits which have been issued before the enforcement of these provisions of L. 4646/2016, as start date is considered the date of enforcement of the Law, and the deadline is also six months long, viz. until 12.06.2020.
The suspension is granted following a decision on the application, with mandatory validity period until 31.12.2020.
Following the implication of this provision, a significant rise and boost is expected in the purchase-and-sales of real estate properties, which will be burdened only with Transfer tax (ΦΜΑ), amounting approximately at 3%.