NEW REGULATIONS ON VAT CALCULATION PRICES ON TRANSFER OF REAL ESTATE IN 9/2022

According to Decree No. 49/2022/ND-CP amending and supplementing a number of articles of Decree No. 209/2013/ND-CP detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax, there is a new regulation on the value-added taxable price for real estate transfer.

Specifically, from September 12, 2022, the land price to be deducted for VAT calculation is regulated as follows:

1/ In case the State is allocated land to invest in infrastructure to build houses for sale, the land price deductible for VAT calculation includes land use levy payable to the State budget according to regulations on collection of use levy. land and compensation, ground clearance (if any).

(Compared to the current one, the regulation "not including land use levy is exempted or reduced") is removed.

2/ In case of auction of land use rights, the land price deducted for VAT calculation is the auction winning land price.

3/ In case of renting land for infrastructure construction or building houses for sale, the land price deductible for calculating VAT is the land rent payable to the State budget and compensation and ground clearance (if any). ).

The above-mentioned compensation and ground clearance money is the compensation and ground clearance amount according to the plan approved by the competent state agency, which is deducted from the payable land use levy and land rent. new). (Remove the regulation "not including the land rent which is exempted or reduced").

4/ In case a business establishment receives a land use right transfer from an organization or individual, the land price deductible for VAT calculation is the land price at the time of receiving the land use right transfer, excluding the base value. infrastructure (previous regulation included infrastructure value).

Business establishments may declare and deduct input VAT on infrastructure (if any).

(Previously, business establishments were not allowed to declare and deduct input VAT of the infrastructure included in the value of the deductible land use rights, not subject to VAT)

In case the land price cannot be determined at the time of transfer, the land price deducted for VAT calculation is the land price set by the Peoples Committee of the province or city at the time of signing the transfer contract.

If the value of infrastructure cannot be separated at the time of transfer, the land price deductible for VAT calculation is the land price set by the Peoples Committee of the province or centrally run city at the time of signing the transfer contract.

5/ In case a business establishment receives a capital contribution with land use rights, the land price to be deducted for VAT calculation is the price stated in the capital contribution contract. If the transfer price is lower than the price of the land to be contributed as capital, only the land price will be deducted according to the transfer price.

6/ In case a real estate business establishment implements the form of build-transfer (BT) payment with the value of land use rights, the land price deducted for VAT calculation is the price at the time of signing the contract. BT.

Source: cafeland.vn