Czech Republic

RSM CZ now offers specific real estate valuations for investors and developers from VAT perspective

When dealing with acquisitions of large properties intended for further development, we have recently received requests for expert opinions on purchase price allocations for the purposes of the VAT Act (Section 56 of Act No. 235/2004 Sb., on Value Added Tax).

The valuations were related to brownfield sites in attractive locations in large cities where a part of original buildings were expected to be restored and kept for future use, unsuitable buildings demolished and new structures built. From the perspective of VAT, in all cases, the buyer was primarily considering the possibility to allocate the agreed purchase price to such properties where VAT-exemption can be applied and to properties the supply of which will be subject to VAT. For this purpose, we have prepared a tailored real estate valuation in a structure as required by the VAT Act and reflecting their potential and expected use. The valuation was then used for the allocation of the agreed purchase price of the properties.

RSM CZ is a member of RSM International, the sixth largest global network of independent consulting firms.

RSM CZ comprises RSM CZ Valuation Institute that has a wide scope of valuation licence granted by the Ministry of Justice of the Czech Republic.

Need advice on real estate valuation or VAT? Let us know.