According to art. 141, para. 2, letter “f” of Law 571/2003 on the Fiscal Code, are exempt from tax (VAT) the delivery of constructions / parts of constructions and of the lands on which they are built, as well as of any other lands. Exceptionally, the exemption does not apply to the delivery of new construction, new construction parts or building land.
The buildable land represents any arranged or unarranged land, on which constructions can be executed, according to the legal framework in force. The qualification of a land as buildable or with another destination, at the moment of its sale, results from the urbanism certificate.
Delivery of a new construction or part thereof means delivery no later than 31 December of the year following the first occupation or use of the construction or part thereof, as appropriate, following the transformation.
A new construction also includes any transformed construction or transformed part of a construction, if the cost of the transformation, excluding the tax, amounts to at least 50% of the market value of the construction or part of the construction, as established by an expert report, excluding the value of the land, after the transformation;
If a building and the land on which it is built form a single land body, identified by a single cadastral number, then an independent expert is called upon to issue an expert report. Thus, you may find yourself in one of the following situations:
– the construction will follow the regime of the land on which it is built, if its value is lower than the value of the land;
– the land on which the construction was erected follows the construction regime, if its value is less than the value of the construction, or
– if the land and the construction have equal values, the regime of the land body will be established according to the real estate with the largest surface, in the case of construction taking into account the developed built surface.
If the exemption provided for in Article 141 applies, according to art. 149, para. 2, letter “a”, paragraph 2, the company is obliged to adjust the VAT deducted on the date of acquisition of the buildings and related land, as well as the VAT related to the modernizations made.
The amount of adjusted VAT must be paid to the State Budget by the 25th of the month following the month in which the sale takes place.
We would also like to inform you that the company is not obliged to apply the VAT exemption for the delivery of real estate or a part of it. This is a facility he can use. Any taxable person may opt for the taxation of such transactions on the basis of a notification submitted to the competent tax authorities stating the immovable property for which he wishes to apply VAT.
If it is decided to invoice all goods with VAT, the company is no longer obliged to adjust the VAT mentioned above.