The General Court of Riyadh returned to my real estate, 5 million riyals; It represents the added value of real estate after its emptying and transfer of ownership, and the judgment is final after the approval of the court of appeal. Sources revealed to “Okaz” that a real estate agent sold a group of lands and residential buildings 14 months ago of different sizes, at which time he paid the buyers 5 million riyals as value-added fees; Considering that payment is a condition for emptying and transferring ownership, and after the completion of emptying, the real estate addressed the buyers to recover the value-added fees that he had paid, but the buyers refused to pay, and then the real estate resorted to the judiciary, submitting its case to the General Court, explaining in it “his agreement with 5 buyers of land and real estate.” With different areas to empty them, and he shall pay the added value on his account from his own account; Considering that the value of the real estate sale does not include the real estate transaction tax imposed under the value-added system, it is stipulated that they pay the amount later, and according to that commitment, payment invoices were issued by the Zakat and Income Authority for the properties sold and were paid automatically by him as this step is obligatory before emptying, except That agreement was not implemented by the buyers and he incurred a loss of payment of 5 million riyals, calling on the court to consider his case and oblige the buyers to return the amount he paid on their behalf, estimated at 5 million riyals.
The court reviewed the submitted documents and pictures of emptying the real estate in dispute before the notary public. The court addressed the Zakat and Income Authority to verify the added tax bills paid by the seller. The price of the property includes the added value. The judicial department examined the case, reviewed the litigants’ notes, copies of voids, and vouchers for the payment of value-added by the seller, and the buyers’ acknowledgment of the value of the agreed-upon property according to what was stated in the case, and ruled that the buyers separately bear the value of the added tax and hand it over to the seller, estimated at 5 million riyals, representing what he paid From the real estate transaction tax, the judgment is gained peremptory.
Lawyer Kholoud Majed Al-Ahmadi commented on this case, saying: The General Authority for Zakat and Income has made it clear that the real estate tax is paid before any real estate sale is emptied, and noted that the tax is imposed on every real estate sale, “The real estate tax due on the property must be paid at the rate of 5% to the Authority before completing the process of emptying it with the Ministry of Justice or through accredited notaries.
Al-Ahmadi indicated that the exemption of the General Authority for Zakat and Income from value-added tax includes all real estate supplies made by way of sale and transfer of ownership or the right to dispose of the property as an owner (including lease ending with ownership, financial leasing, and financial Murabaha), stressing that the real estate tax includes a number of exceptions; Including, for example, but not limited to the distribution and transfer of ownership of real estate among the heirs as part of the distribution of the estate, the gift of real estate free of charge to the husband or wife or one of the relatives up to the second degree (father and mother and if they are raised, children male and female and if they are descended), and the transfer of ownership of the property free of charge to an atomic endowment (my family), a charitable or an authorized charity, and other exceptions as detailed in legislation related to real estate tax; In addition to exempting government real estate from value added, she pointed out that residential products that are bought or sold in real estate auctions are subject to value added tax.
Al-Ahmadi: Real estate tax is paid before emptying
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