With regard to the above issue, you are informed that the possibility of choosing the lessor to inform the Tax Commissioner about the non-taxation of the lease and/or rental of immovable property, under the terms and conditions specified in the notification of the Tax Commissioner K.D.P.305/2024 published on 13.9.2024 may be submitted until 31.7.2025 and include the lease agreements made from the date of entry into force of Law 157(I)/2017 on 13.11.2017.
This circular applies to leases for which (a) the lessor has not imposed VAT in accordance with the provisions of paragraph 1(a)(vi) of the Eighth Annex of Law 95(I)/2000 as amended and (b) has declared such leases for direct taxation purposes.
This circular does not apply to leases for which the lessor imposed VAT on a taxable person for the purposes of exercising a taxable business activity and therefore the lessee had the right, in accordance with the provisions of articles 20 and 21 of Law 95(I)/2000, as amended, to deduct the VAT imposed by the lessor.
As of 1.8.2025 , this circular ceases to be valid.
Therefore, from 1.8.2025, for a lease to a taxable person for the purposes of exercising a taxable business activity, the lessor may choose to inform the Tax Commissioner about the non-taxation of the lease and/or rental of immovable property within 30 days from the date of signing the lease. The Registrar may approve another date later than 30 days for the submission of the form T.F.1220 (2024).
For more information you can contact the Tax Department.
