What does housing value-added tax mean? Real estate VAT refers to the fees charged by the state for the appreciation of real estate. The collection of real estate value-added tax varies from region to region. If your friend sells the house he has bought for less than two years, he will pay 5% VAT in full. If the house has been bought for more than two years, it will be sold without paying VAT. This is the expropriation policy for areas outside Beijing, Shanghai, Guangzhou and Shenzhen. If it is in Beijing, Shanghai, Guangzhou and Shenzhen, the value-added tax will be levied at 5% of the profit income even if the house has been bought for more than two years. Do you understand this explanation?