The analysis of the tax treatment of the sale of developed real estate or so-called ‘first occupation’ audit

One of our Clients was considering the purchase of land with old factory buildings. The purchased property was to be the site of a development project. Transactions involving developed real estate can be subject to either VAT or, if tax exemption applies, tax on transactions in civil law. Thus, the Client asked us to examine the way the transaction in question would be treated in order to ensure correct settlement of the transaction and tax compliance. In order to verify the tax treatment of the transaction, our team carried out a ‘first occupation’ audit, following which we prepared a report specifying the correct tax treatment. We also supported the Client throughout the transaction and assisted with the correct settlement of the transaction.