The Minister of Finance (MoF) issued PMK-415 to implement GR-446 in relation to the imposition of Value Added Tax (VAT) on the delivery of foreclosed assets by a creditor to a buyer. PMK-41 will be effective on 1 May 2023.
The Final VAT payable on the delivery of foreclosed assets is collected, remitted, and reported by the creditor. The Final VAT is collected when the creditor receives payment from the buyer. The Final VAT rate is set at 1.1% of the tax base (i.e. of the selling price of foreclosed assets).
Source – PwC
