- Operations of transferring land use rights to others and lease rights on land will not be subject to VAT
- One of the important changes made to the Tax Code in the direction of reducing the tax burden on businesses and promoting entrepreneurship is related to not subjecting the operation of transferring land use rights to others and lease rights on land to value-added tax (VAT)
- According to the Tax Code requirements, land is not considered as goods for VAT purposes, and transferring land ownership rights to others is not considered as a service
- Income obtained from leasing land by individuals and transferring land use rights to others is considered as income from non-entrepreneurial activities, so these operations are not subject to VAT
- However, there was a discrepancy in the law as these operations were subject to VAT when carried out by legal entities, leading to the need for amendments to align the legislation with the object of VAT collection.
Source: taxes.gov.az
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.
