If the VAT payer makes the first transfer of the right of disposal on a newly built residential building - a prefabricated house with land (under the building and serving the regular use of this object), a special VAT rate of 10% is applied.
If the VAT payer makes the first transfer of the right of disposal on a newly built residential building - a prefabricated house with land (under the building and serving the regular use of this object), a special VAT rate of 10% is applied. Namely, in this case it is a question of real estate, which is also discussed in the Opinion of the Ministry of Finance, the extract of which we quote below.
OPINION OF THE MINISTRY OF FINANCE
number 011-00-832/2020-04 of 12. 1. 2021.
'The turnover of a prefabricated house intended for housing, which is sold without land, is taxed at a general VAT rate of 20%, since the turnover of this good is not considered the first transfer of the right of disposal on a newly built apartment, for which taxation is prescribed at a special tax rate of 10%. Accordingly, the right to a VAT refund for the purchase of the first apartment referred to in Article 56a of the Law cannot be exercised on the basis of the purchase of a prefabricated house without land, since this property is not considered an apartment within the meaning of the said provision of the Law. However, if the buyer of the first apartment buys a residential object — a house, including a prefabricated house, with the associated land, which means that he buys real estate, in which case it is entitled to a refund of VAT in accordance with the Law. '
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