How does the conclusion of contract affect the transitional provisions for supplies of real estate?
If the contract has been concluded before VAT implementation (January 1, 2018) and the supply is wholly made before the effective date, the supply will not be subjected to VAT.
If a supply is wholly or partly made after the implementation date, the supply shall be treated as follows:
The supply will be considered inclusive of tax if it is subject to VAT under the law.
The seller will need to pay VAT to the FTA, regardless of whether it was included in the buyer’s sale price.