VAT on Sale of Condominium Housing Units

Budget 2018 – Imposition of Value Added Tax (VAT) for Sale of Condominium Housing Units

The Supply of Condominium housing units will be liable for VAT with effect from April 1, 2018 as proposed in the Budget 2018. However, supply of Condominium housing unit will be exempted from VAT under the following cases;

1. Sale of any Condominium housing unit, in respect of which the sale agreement has been entered prior to April 1, 2018; or
2. Any Condominium hosing project, with maximum price of every condominium housing unit is not exceeding Rs. 15Mn per unit.

There is no legal provisions to exempt Condominium projects, which may commence operations prior to April 1, 2018.