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Regarding the tax from the acquisition of real estate, the financial administration will now accept the price negotiated without VAT by the payer. It came about on the basis of two judgments of the Highest Administration Court (4 Afs 88/2017 – 35 a 7 Afs 301/2016 -70), which applied to the purchase of municipal land in Střelská Hoštice for which the purchase price was negotiated including VAT.
The Supreme Administration Court decided in accordance to the principle of the original law (the so-called law of triple tax) that on the base of the tax from the acquisition of real estate, the tax base is the financial revenue of the transferor reached by the purchase of the real estate only. The tax base is not the price with VAT, because VAT is not the revenue of the transferor, because VAT is returned into the state budget. In practice, VAT payers were disadvantaged, for whom the tax from the acquisition of real estate will be counted from a higher tax base than by non-payers. This time however, the HAC has tended to the interpretation in favour of the payer.
The Financial administration declared the above-mentioned procedure in its press release, in the process, this procedure will be used unequivocally by transactions realised up to the 31st of October 2016, when the payer was a transferor. According to the conclusions and basic principles initiated in the judgments, it is possible to proceed in the same way as for the transactions, where the payer was an acquirer and which occurred up to the 31st of October 2016 or from this date.
According to the current transfer of real estate, it is easy to proceed according to the above-mentioned judgments and in cases when the price was negotiated with VAT, to count the tax on the acquisition of immovable property from the tax base without VAT. We expect that the tax administrator can appeal against this procedure. The tax payers will be assured in time, when this procedure will be judged by the Supreme Administration Court.
In accordance with these judgments, you can now submit an additional tax return for the tax on the acquisition of immovable property and request a part of the previously paid tax on the acquisition of immovable property and get back 4% of the VAT, which was paid by the acquisition of immovable property. It is possible to submit the additional tax return for the tax from the acquisition of immovable property within a 3-year period from the day the completed tax return from the tax on the acquisition of immovable property was submitted.