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 |