The VAT treatment on land and property transactions depend on the transaction type such as supplies of land, rights over land and licence to occupy land. This document discusses these in detail, together with the meaning of land; whether the transaction is a supply of goods or services; exempt supplies of land; non-exempt supplies of land and their VAT treatment.
The VAT treatment of transactions relating to land and property is very complex. Care needs to be taken when determining the correct VAT treatment. This guidance note is intended to provide you with a brief overview of the main points that need to be considered, as well as links to other guidance notes that provide a more in depth analysis of the points raised.
More detailed information on land and property transactions can be found in VATLP01000.
What are land and property transactions?The following section provides a brief overview of the most common types of land and property transaction. Lubbock Fine & Co v C & E Comrs (Case C-63/92)  STC 101 (subscription sensitive); De Voil Indirect Tax Service V6.322 (subscription sensitive) See also VAT and Property, para 2.29.
Supplies of land
For VAT purposes, the term 'land' includes any of the following:VATA 1994, Sch 4, parah 4; VATLP02200