Accueil Real Estate VAT

The value of a property right granting its holder a right of use over immovable property and the cost of completing the office building built on the land in question may be included in the taxable amount of a self-supply when the taxable person has al-ready paid VAT on that value and on those costs, but also deducted that VAT immediately and in full.

In a situation where a parcel of land and a building under construction on that land have been acquired by way of the grant of a property right giving its holder a right of use over such immovable property, the taxable amount of the self-supply corresponds to the value of the amount to be paid in consideration each year for the remainder of the long lease granting the property right.

The conformity of the French tax authorities’ official guidance, which provides that “When the construction is made by a taxable person to whom the land is leased, the cost price includes the amount of the lease payments related to the lease term” (BOFiP BOI-TVA-IMM-10-20-10) may be called into question.

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