VAT treatment on supplies of farm lands and farm buildings can differ by taking into consideration of facts and principles of individual case of supply of farm lands and farm buildings.
The supply of farm house which is constructed as a residential building and is occupied by the person as his principal place of residence should be exempt from VAT or Zero rated in case of the first supply after construction.
The supply of farm house / building which is not intended to be used as a principal place of residence should be subject to the standard rate of VAT.
The supply of farm land covered with civil engineering works or with the operations of any farming / irrigation should be subject to the standard rate of VAT.
The supply of farm land without any civil engineering works and without operations of any farming / irrigation is considered as bare land and should be exempt from VAT.
The supply of farm with mixed or composite consideration should be apportioned appropriately.