Since the beginning of 2018, tax authorities across the country have begun large-scale bidding and procurement of land value-added tax clearing and auditing services from third-party intermediaries. After the merger of state and local taxes, a large number of real estate projects across the country have reached the liquidation conditions and need to be processed for land value-added tax clearance, ushering in a batch of centralized liquidation. Due to the poor fiscal management of many real estate enterprises prior to the liquidation of the project, the cost of land value-added tax liability for active liquidation was abnormally high, which to a certain extent resulted in the low motivation of real estate enterprises to take the initiative to liquidate. In recent years, the real estate market is no longer as prosperous as it was before 2020. Under the influence of the economic downtrend, local governments objectively have the demand to accelerate the liquidation of land value-added tax. Local governments are not only promoting the liquidation of real estate projects that meet the conditions for liquidation as soon as possible, but also strengthening the collection and management through the application of tax big data. Against this backdrop, a large number of real estate enterprises are caught in tax arrears and face severe land VAT risks.

      Land Value Added Tax (LVAT) Compliance Report for the Real Estate Sector (2024) is a legal research report compiled based on Hwuason's in-depth observation of the real estate industry and profound summarization of its experience in representing land value-added tax (LVAT) cases in the real estate industry, aiming to reveal the current situation of land value-added tax (LVAT) cases in the real estate industry and trends of investigation, to bring together and consolidate the focuses of LVAT settlement-related tax-related disputes, to analyze the risk of land value-added tax (LVAT) in the real estate industry and to put forward professional strategies of resolving tax-related disputes and proposals of complying with the operation, with a view to providing useful guidance for real estate enterprises in preventing and responding to the risk of land value-added tax.

Click to download:Land Value Added Tax (LVAT) Compliance Report for the Real Estate Sector (2024)