Ask a tax advisor on the topic of Real estate taxation

Real estate sale

March 28, 2011 | 50,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Dear Sir or Madam,

the following question arises:

In a property inherited decades ago, rooms were converted into a restaurant approximately 20 years ago. The restaurant was rented out to a commercial tenant and opted for VAT. Residential rooms were rented out to private tenants without VAT.

In 2010, this property was sold. The notarial contract did not contain any indication of VAT exemption.

How does the sale affect VAT?

Thank you for your response.

Dipl.BW/SB Ulrich Stiller

Dear client,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your engagement in an initial consultation as follows:

I understand your inquiry to be that no value-added tax was declared in the sales contract.

The sale of the property is exempt from tax according to § 4 No. 9a UStG, as the sale falls under the Real Estate Transfer Tax Act. A waiver of the VAT exemption would need to be declared in the notarial sales deed (§ 9 paragraph 3 sentence 2 UStG). Since this has not been done, the sale is exempt from VAT.

I hope I was able to assist you.

Best regards,

Ulrich Stiller
Tax consultant/Diplom Betriebswirt