Below is a summary of the VAT treatment for real estate transactions:
| Transaction | VAT Treatment |
|---|---|
First supply of residential property | Taxable at 5% |
Resale of residential property | Exempt |
Rental for residential purposes | Exempt |
Sale of commercial property | Taxable at 5% |
Rental for commercial purposes | Taxable at 5% |
Supply of real estate located in Special economic zones | Zero Rated |
Sale of undeveloped lands | Exempt |