1. VAT REAL ESTATE PROPERTY – PURCHASE OPTION
Taxable events
Withdrawal of TREP from the taxpayer’s business, for family use or consumption
Award of TREP from the taxpayer’s business
Companies contributions and property transfers of TREP from the taxpayer’s business
Withdrawal of TREP that are or are not from the taxpayer’s business, destined to raffles and sweepstakes
Sale of universalities containing TREP from the taxpayer’s business
Assignment of the use and enjoyment of furnished TREP
Leasing agreements over TREP that are performed by a seller
Sale of TREP that are part of the fixed assets, provided that the taxpayer was entitled to a tax credit.
When does the tax become accrued?
At the moment of TREP’s withdrawal.
At the time of issuance of the invoice or invoices.
(1) Performed in liquidations of civil and commercial companies.
(2) Does not apply to hereditary communities and communities resulting from the dissolution of the conjugal partnership.
When is regularity presumed?
R: When between the TREP acquisition or construction date and the contract execution date 1 year or less has elapsed.
On the occasion of:
- Extension
Amendment
Incorporation
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“TREP”: Tangible Real Estate Property

2. “TREP”: Tangible Real Estate Property
WHICH SALES OR ACTS RELATED TO REAL ESTATE PROPERTIES ARE VAT FREE?
LEASE OF REAL ESTATE PROPERTY
SALE OF A HOUSE MADE TO THE BENEFICIARY OF A HOUSING SUBSIDY
What happens if the properties are furnished or have facilities or machineries that allow the exercise of an activity?
R: The lease is not VAT free
By whom must the subsidy be granted?
R: Ministry of Housing and Urban Planning
SALE OF LAND
LEASING AGREEMENTS OVER TREP
PROVIDED THAT NO VAT was charged in the acquisition of the goods subject to the contract that immediately preceded the lease, because the sale is VAT exempt or not subject to VAT.
GENERAL CONSTRUCTION AGREEMENTS
LEASING AGREEMENTS
ONLY when they have been benefited in whole or in part by a housing subsidy.
“TREP”: Tangible Real Estate Property