Land and buildings ― buying and selling ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of the VAT issues relating to buying and selling land and buildings. For detailed commentary, see De Voil Indirect Tax Service V4.102.

What is the VAT treatment of the sale of land or a building?

The VAT treatment of the sale of land or a building depends on the facts. Depending on the facts, a transaction may be:

•
zero-rated ― for example, the sale of a new dwelling by the person that has constructed it
•
exempt from VAT ― for example, the sale of bare land the seller has not opted to tax
•
outside the scope of VAT ― for example, the sale of land and buildings in the context of a business as a going concern
•
standard-rated ― for example, the sale of land and buildings the seller has opted to tax

A key factor that can influence the VAT treatment is the type of property being sold. For example, whether it is commercial property, dwellings, residential or charitable

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