Purchases and sales of real estate are generally exempt from VAT. Anyone who acquires a rental property is therefore usually not entitled to a refund of the pre-tax amounts incurred during the acquisition – but there are exceptions. Because on the one hand, the buyer can rent the property taxable, on the other hand, but even have the previous owner refunded input tax. The legal basis for this is § 15a paragraph 10 UStG, which applies to business sales in general.
Pre-tax and real estate – how does it fit together?
Acquisition and rental of real estate are tax-free according to § 4 no. 9 letter a and no. 12 letter a UStG. Due to the tax exemption of the rental, the purchaser is not liable to deduct input tax according to § 15 paragraph 2 UStG (for example)
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.