New approach of the financial administration in the determination of tax base of real estate transfer tax paid by the purchaser


In reaction to the ruling of the Supreme Administrative Court concerning the determination of the negotiated price with regard to the VAT for the purposes of the real estate transfer tax base which we have informed you of, the Financial Administration issued new information at the end of November.

The communique contained information on an amended stance of the Financial Administration stating that the above Court’s conclusions may also be applied in the instances when the payer of the real estate transfer tax is/was the buyer of the property. The tax base in the case of a negotiated price having been applied is the price without the VAT irrespective of the fact who is the transferring taxpayer.

Based on this information it is possible to submit an additional tax return and claim the part of the real estate transfer tax which was paid at the price including the VAT. Specifically, they are the cases of purchases made after 1 January, 2014, the property transfer was subject to VAT and the term for a tax preclusion has not expired.

If you believe that you might be one of the cases the above applies to and an additional tax return ought to be filed and the paid tax could be claimed, our tax advisors are ready to assist you with the whole process.