From next year, value-added tax (VAT) on car and apartment sales will apply to the difference between the purchase and sale prices.
“Operative Information Center-OMM” reports that Nicat Imanov, head of a main department at the State Tax Service under the Ministry of Economy, made the remarks at a meeting of the Milli Majlis (National Assembly) Committee on Economic Policy, Industry and Entrepreneurship held today.
He said VAT on the resale of cars would also be calculated on the trade margin: “As you know, when vehicles officially repurchased from citizens by car dealers were offered for resale, 18% VAT was payable. This created unfavorable conditions for businesses. Taking entrepreneurs’ concerns into account, VAT on the subsequent sale of cars acquired from individuals through non-cash payments will be calculated on the difference between the purchase and sale prices — in other words, on the trade margin.”
Imanov said another significant change was the application of a similar mechanism to businesses operating in building construction and to the real estate market more broadly.
“Accordingly, when legal entities that buy apartments from individuals, as well as businesses engaged in building construction, put those residential properties up for resale, VAT will be calculated on the difference between the purchase and sale prices,” he added.
