Decree 49/2022/ND-CP dated July 29, 2022 guiding the determination of deductible land prices for VAT calculation for real estate transfer activities in some cases as follows:
For real estate transfer activities, the value-added tax calculation price is the real estate transfer price minus (-) the land price deducted for value-added tax calculation.
a) Land prices to be deducted for VAT calculation are specified as follows:
a.1) In case the State allocates land for investment in infrastructure for construction of houses for sale, the land price shall be deducted for the calculation of value-added tax, including land use levy payable to the state budget in accordance with the law on collection of land use levy and compensation. ground clearance (if any).
a.2) In case of land use right auction, the land price to be deducted for VAT calculation is the price of the auction-winning land.
a.3) In case of lease of land for infrastructure construction or construction of houses for sale, the deductible land price for VAT calculation is the land rent payable to the state budget in accordance with the law on collection of land rent, water surface rent and compensation and ground clearance (if any).
The compensation and ground clearance money specified at Points a.1 and a.3 of this Clause is the amount of compensation and ground clearance according to the plan approved by the competent state agency and deducted from the land use levy and land rent payable in accordance with the law on land use levy collection. collect land rents and water surface rents.
a.4) In case a business establishment receives the transfer of land use rights from organizations or individuals, the land price to be deducted for VAT calculation is the land price at the time of receipt of the land use right transfer, excluding the value of infrastructure. Business establishments may declare and deduct input value-added tax on infrastructure (if any). In case the land price cannot be determined at the time of receiving the transfer, the land price to be deducted for VAT calculation is the land price prescribed by the People's Committee of the province or centrally run city at the time of signing the transfer contract.
In case a business establishment receives real estate transfer from organizations or individuals that has determined the land price including the value of infrastructure as prescribed at Point a, Clause 3, Article 4 of Decree No. 209/2013/ND-CP (amended and supplemented in Clause 3, Article 3 of Decree No. 12/2015/ND-CP dated February 12, 2015), the land price shall be deducted for value-added tax calculation is the land price at the time of receiving the transfer, excluding infrastructure.
In case the value of infrastructure cannot be separated at the time of receiving the transfer, the land price to be deducted for VAT calculation is the land price prescribed by the People's Committee of the province or centrally-run city at the time of signing the transfer contract.
a.5) In case a business establishment receives capital contribution with land use rights from an organization or individual, the deductible land price for VAT calculation is the price stated in the capital contribution contract. In case the land use right transfer price is lower than the land price for which capital is contributed, only the land price may be deducted according to the transfer price.
a.6) In case a real estate business establishment pays in the form of build-transfer (BT) with the value of land use rights, the land price deducted for VAT calculation is the price at the time of signing the BT contract as prescribed by law; if at the time of signing the BT contract the price has not been determined, the deductible land price is the land price decided by the People's Committee of the province or centrally-run city to pay for the project.
b) In case of construction or business of infrastructure, construction of houses for sale, transfer or lease, the value-added tax calculation price is the amount of money collected according to the project execution schedule or the schedule of collection stated in the contract minus (-) the deductible land price corresponding to the percentage of the collected amount to the total contract value.
