VAT & Builders Taxes

spireite


Joined: 21/02/2007
Posts: 19


Message Posted:
01/02/2008 16:30

This week we have received our PTP, what a coincidence after waiting almost 5 years it comes through just as the new Law on registering purchases comes out.



I have ask my solicitor what other fees we can expect to have to pay before we finally receive our deeds.



As our Vendor is refusing to pay any taxes even though the contract ( for what it is worth ) states the Vendor will pay the VAT, we are expected to pay the Vat at 5% plus Stopage Tax at 6.5% ,this has come out of the blue as I have never even heard of Stopage Tax before.



Has anyone else heard of this Tax or had to pay it ?

rtddci


Joined: 29/12/2007
Posts: 542


Message Posted:
01/02/2008 17:44

Never heard of it but then nothing surprises me about the TRNC and it's rip off policies these days.

Bradus


Joined: 25/02/2007
Posts: 747


Message Posted:
01/02/2008 22:14

Hi SPIREITE,

As far as I know the stoppage tax is the Capital Gains Tax payable to the Tax office BY THE VENDOR. Very few people get away with the builder paying the VAT infact it is written into our contract that the purchaser will pay the VAT. I checked this with my advocate who maintained VAT was payable by the purchaser unless specifically agreed otherwise but the Capital Gains or stoppage tax is always the responsibility of the vendor.

However as is often the case in these matters talk to 3 different people and you will get 3 different answers. I hear that this is a common scam and that builders do this knowing that you are at a stage where you are desperate for your deeds. Is it worth PCO?