Most sales and leases of immovables (real property) by public service bodies are tax-exempt. In some cases, however, they are taxable. Taxable sales and leases of immovables include:

• sales of new houses or houses that have undergone substantial renovations
• sales of vacant land to an individual
• sales of immovables that you use primarily in your commercial activities
• sales or leases of immovables that you choose to treat as taxable (see Special Election for Immovables)

Special rules may apply if:

• you claim an input tax credit (ITC) and an input tax refund (ITR)
• you build a subsidized residential complex