“O’zshahar Qurilish Invest”: VAT will be applied to the company’s new buildings from July 1

In accordance with the presidential decree of 28 November 2019 “On additional measures to improve the mechanisms of mortgage credits”, the “O’zshahar Qurilish Invest” Ltd was released from the value-added tax on the realization of its housing projects, which were built according to the 2017-2019 program until 1 July 2020. It should be noted that this date is approaching.

Before registration of housing in a notarial order, the houses remain as the property of “O’zshahar Qurilish Invest” Ltd. To date, most of the citizens assigned to the housing by the territorial commissions have registered their houses and apartments in their own names using the above-mentioned benefit.

However, in case citizens are not able to register the housing assigned to them in notarial order, to take mortgage loans, or to pay the value of the apartments at their own expenses before July 1, 2020, a VAT of 15 percent will be added to the total value.

For example, if the average cost of 1 square meter of housing is 3,980,000 soums, the total value with value-added tax will be 4,577,000 soums (VAT - 597,000 soums). (This example is given for 7-storey houses of the city of Tashkent. The cost of housing in the regions will change according to the prices offered).

Thus, in order to prevent a sharp increase in prices for housing after the addition of VAT, citizens are urged to register apartments in their names by notary order before June 15.

This requirement does not apply to citizens who have registered a housing in their name under a notarial order on the basis of a mortgage loan.

#VAT