This Public Clarification addresses the VAT treatment for the sale of a building where the purchaser subsequently changes its permitted use. It establishes that the VAT status of the supply—be it standard-rated, zero-rated, or exempt—is determined at the date of the initial sale and is unaffected by any later change in the building's use. The document clarifies that the original transaction's VAT treatment remains final. For instance, the sale of a hotel apartment remains standard-rated even if the buyer converts it to a residential unit. This guidance interprets key real estate provisions, including Articles 25, 45 and 46 of the VAT Decree-Law.