If a developer bought a vacant piece of land and commenced construction of a commercial building and claims all VAT pertaining to the construction of it. Then leases out units for rental income purposes. So it is investment property. Now after 3 years, the developer has an offer to sell. Is the sale to another company who will be also using it to be leased out subject to Zero rating? Technically speaking the developer has claimed all VAT inputs and now pays VAT at Zero Rate when selling the development.
IS this correct?