- VAT and real estate advisory services are complex and involve high transaction amounts
- Different VAT issues arise in the lifecycle of a property: creation/acquisition, operation, dismantling or sale
- Input tax deduction is allowed for VAT invoiced and paid within the scope of business activity
- There is no entitlement to input tax deduction for supplies used for tax-exempt services
- Exceptions exist for certain uses, such as letting living rooms for accommodation
- Dismantling costs and input tax deduction depend on whether there was a change of ownership before demolition
- Dismantling costs without prior change of ownership are based on previous business use for input tax deduction
- Future use and change of use are not relevant for input tax deduction in connection with dismantling costs.
Source: primetax.ch
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
