Vladimir Putin signed a law according to which contractors for the construction of individual housing will be subject to the same taxation rules as developers of high-rise buildings. That is, the rules are preferential, with the abolition of VAT.
However, in our construction industry, everything is not that simple. Only those contractors of individual housing construction (IHS) who build houses using escrow accounts will fall under the action of the adopted law.
Real estate market experts say that the application of this very condition with escrow accounts for residential housing, among other things, is justified by the desire of legislators to hedge against unscrupulous contractors. So from now on, there is a proliferation of project financing, escrow accounts and residential housing contracts in Russia.
And all this is now included in the list of services that are not subject to VAT. In fact, the purpose of the innovation is simple – it is about reducing the cost of individual homes. Accordingly, the accessibility of the construction of such facilities will be increased. After all, the real estate market, and the construction complex today, if not completely up, is experiencing quite serious difficulties. Therefore, the country’s leadership, the president and the government decided to help him.
“The abolition of VAT in this case will reduce the cost of houses. This will attract both contractors to build individual houses, and citizens to buy houses,” notes financial analyst Irina Plaksina. “This law will come into force on April 1, 2025.”
Evgeny Alexandrov.
Photo: LEGION-MEDIA
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