Roche & Cie

Real property : a new definition of VAT on 1 January 2017

The new definition of real property will be the same for all countries of the EU and will have an impact in many areas on VAT, in particular regarding the territoriality of services connected with immovable estate.

According to this new definition, there will be four classes of real property. Will thus be considered as such:

– Any specific part of the earth, located at or under the surface, to which can be attached property rights or possession;
– Any building or building attached the ground or in the ground, above or below sea level, which can not be easily moved;
– Any component installed and an integral part of a building or structure without which the building or construction is incomplete (doors, windows, roofs, stairs, elevators …)
– Any equipment or machine permanently installed in a building or structure that can not be moved without destroying or modifying the building or construction.

Note that the European Commission has elaborated on this concept in the explanatory notes published October 26 2015.