Building land – the land which is intended for construction, regardless of whether some works have been done or not. When determining whether the land is the land for construction, it should be taken into account if there are permits for the construction, if construction in that land is included in municipal detailed plans. Still each case has to be considered separately, even if these conditions are not fulfilled. If it can be said unequivocally that construction work will be done in that land (e.g. the buyer is construction company planning to build in that land and construction works are included in general plans of the territory where the land is situated), such land can be considered to be building land.
The land sale or other transfer when a person to whom the land is transferred or a third party acquires the right to dispose of it as its owner are exempt from VAT. However, this exemption is not applicable for building land.
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