Suspension of VAT on real estate: Ministerial Decisions published

The Ministerial Decisions detailing the application of the VAT suspension measure on real estate for three years were published in the Government Gazette.

In particular, the first decision defines the procedure for granting a suspension of VAT, as provided by article 6 of the VAT Code (Law 2859/2000) as supplemented by article 39 of Law 4646/2019, while the second decision concerns procedure of settlement of already tax deductible for property subject to VAT suspension.

Article 39 of Law 4646/2019 supplemented the provisions of the VAT Code. (Law 2859/2000, A΄ 248) and at the request of the taxable builder for sale, the application of VAT is suspended until 31.12.2022 and a property transfer tax is imposed. Suspension relates to all real estate objects. Along with the application, the taxpayer submits a list of the unsold properties and the tax amount corresponding to each property to be settled.

The application shall be submitted within six (6) months of the entry into force of the provisions of this paragraph for the licenses already issued, whilst licenses issued after the entry into force of those provisions shall be six months from the date of issue of the license.

According to a statement from the Ministry of Finance, “The VAT suspension measure aims to rejuvenate the real estate market and in combination with other already implemented regulations, such as lowering ENFIA and providing incentives for energy, functional and aesthetic upgrading of buildings, is expected to have significant benefits for small and medium-sized properties and make a decisive contribution to strengthening all occupations related to the building and construction industry.”