Prefabricated houses have been gaining more and more fans over the last few years, as they can be cheaper than traditional construction and are much quicker to build. But there are still doubts among builders and families about the application of VAT on the sale of these homes. The Tax and Customs Authority (AT) has already clarified that, as a general rule, the transaction of these prefabricated or modular houses is subject to the normal VAT rate (23%), with the exception of cases in which the operation involves the payment of IMT.
The issue of charging VAT on the sale of prefabricated houses was raised by a company in the sector, which said it charges VAT on these operations, although it is aware of companies that don't, claiming that they are harming the competition, writes Jornal de Negócios.
The tax authorities' understanding on this matter is clear: the sale of prefabricated or modular houses(whether mobile or not) is subject to the normal VAT rate of 23 per cent, considering that this is a transaction involving the provision of construction services. The rule is the same for prefabricated houses that have already been assembled in the factory as it is for those that are assembled on the owner's land, according to the same newspaper.
It should be noted that the AT has pointed out an exception: cases of import and sale of mobile or modular homes in which the operation involves the payment of Municipal Property Transfer Tax (IMT) are exempt from VAT.
Article seen in Jornal de Negócios: