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A consultant wishes to purchase a show home and the furniture it contains. The DGT determines that the property is a first supply subject to VAT, but the furniture must be taxed at the standard rate.
Question posed: Liability and applicable tax rate for the acquisition of furniture included in the property for Value Added Tax purposes.
The supply of furniture that optionally equips a property shall be taxed at the standard rate of 21% VAT, even if carried out jointly with the supply of the property. The property, being a first supply by the developer and having not been used for more than two years, is subject to and not exempt from VAT.
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