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What is the VAT treatment of the sale of land or a building?

The VAT treatment of the sale of land or a building depends on the facts. Depending on the facts, a transaction may be:

1. •

   zero-rated ― for example, the sale of a new dwelling by the person that has constructed it

2. •

   exempt from VAT ― for example, the sale of bare land the seller has not opted to tax

3. •

   outside the scope of VAT ― for example, the sale of land and buildings in the context of a business as a going concern

4. •

   standard-rated ― for example, the sale of land and buildings the seller has opted to tax

A key factor that can influence the VAT treatment is the type of property being sold. For example, whether it is commercial property, dwellings, residential or charitable