(Dan Tri) - The Ministry of Finance has proposed several ways to calculate value added tax on real estate business. In which, there are 7 cases where real estate prices are deducted for tax calculation.
The Ministry of Finance is drafting a Decree detailing the implementation of a number of articles of the Law on Value Added Tax (VAT) (2nd draft), including a number of proposals related to real estate business activities.
7 cases where land price is deducted to calculate VAT
Specifically, for real estate business activities, it is the real estate selling price excluding VAT, minus land use fee or land rent paid to the State budget (deducted land price). The Ministry of Finance has proposed 7 cases where land price is deducted to calculate VAT.
The first is the case of land allocation by the State, land lease with one-time payment for the entire lease term through auction or without auction, change of land use purpose, recognition of land use rights, adjustment of land allocation decisions, adjustment of land lease decisions, adjustment of detailed planning, extension of land use, adjustment of land use term, change of form from land lease with annual payment to land lease with one-time payment for the entire lease term.
The land price deducted for VAT calculation will be the land use fee, land rent paid in one lump sum for the entire rental period calculated according to the provisions of the Government's Decree on land use fee, land rent excluding compensation, support, and site clearance for land that the land user has paid in advance, if any.
Second, in case the business establishment receives the transfer of real estate which is the land use right of organizations or individuals, the land price deducted to calculate VAT when transferring is the land use fee, land rent paid to the state budget of the land or land plot received as transfer, excluding the value of infrastructure.
The Ministry of Finance proposes 7 cases where real estate prices can be deducted for tax calculation (Photo: Trinh Nguyen).
Third, in case a business establishment receives capital contribution in the form of land use rights from organizations or individuals, the land price deducted for VAT calculation is the land use fee and land rent paid to the state budget.
Fourth, in case a business establishment performs a BT contract (build-transfer contract) and is paid by land fund, the land price deducted for VAT calculation is the value of the land fund paid according to the provisions of law on investment under the public-private partnership method.
Fifth, in the case of construction, infrastructure business, house construction for sale, transfer or lease, the VAT taxable price is the amount collected according to the project implementation progress or the collection progress stated in the contract minus the deductible land price specified in the above cases corresponding to the percentage of the collected amount over the total contract value.
Sixth, in the case of building a multi-storey house with many households or an apartment building for sale, the deductible land price calculated for one square meter of house for sale is determined by dividing the deductible land price according to the regulations in the first to fourth cases by the number of square meters of construction floor excluding common areas such as corridors, stairs, basements, and underground construction works.
7. In case the business establishment receives the transfer of real estate or receives capital contribution in the form of land use rights from organizations and individuals specified in cases 2 and 3 and cannot determine the land use fee or land rent paid to the state budget, there are 2 options.
Option 1 is that the tax authority is responsible for providing the amount of land use fees or land rents paid to the state budget based on the management database at the request of the business establishment.
Option 2 is the case where the deductible land price cannot be determined at the time of transfer, then the VAT calculation price is the transfer price.
When is VAT determined?
For real estate business, infrastructure construction, house construction for sale, transfer or lease, the Ministry of Finance proposes that in cases where ownership or usage rights have been transferred, the time for determining VAT is the time of transferring ownership or usage rights of goods to the buyer, regardless of whether the money has been collected or not.
In case ownership and usage rights have not been transferred but payment is collected according to the project implementation progress or the payment progress stated in the contract, the time for determining VAT is the date of payment collection or according to the payment agreement in the contract.
Source: https://dantri.com.vn/kinh-doanh/de-xuat-7-truong-hop-gia-bat-dong-san-duoc-tru-de-tinh-thue-vat-20250307094933791.htm
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