New VAT Law
The Parliament adopted two draft laws on the payment of value added tax and a number of related charges for leasing / leasing of land.
According to the first law, when leasing a land as a VAT payer for conducting taxable economic activities, this person must pay VAT, but will be exempt from paying a fee for transferring land rights in the Department of Land Resources.
The second law equalizes the conditions for calculating and paying VAT for the purchase and leasing of real estate. In particular, the house area of up to 200 square meters is subject to VAT at a reduced rate of 5% regardless of whether it is purchased or leased. The property is an area of more than 200 square meters is subject to a 19% VAT.
The new rules will come into force on September 1 of this year.