VAT...is this a scam?

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
01/06/2009 10:09

Hi....would love some advice from forum members....I have been informed by my accountant in the UK that UK VAT is not payable in NC / Turkey as it is outside the EU.



What is the local rate...and on what items is it payable.



My reason for questioning this is....ESTATE AGENTS!....some charge, some do not, how can this be?..when you query this with them...the reply is often ( not always )...we can do something about the VAT????



Would appreciate any facts available.....thanks

sporty


Joined: 06/12/2007
Posts: 685

Message Posted:
01/06/2009 10:14

another thing that keeps popping up is you see properties as "taxes already paid" etc,do you pay vat or tax on a resale? would like an answer if anybody knows,thanks in advance.

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
01/06/2009 10:26

The VAT goes towards buying and running the fleet of black V8 4x4's that are an essential part of any Estate Agent's job.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
01/06/2009 10:28

funny....if i wanted property to rent, at least 4 agents would have responded by now...am wondering why there is a lack of response to my query?

millzer


Joined: 12/04/2007
Posts: 978

Message Posted:
01/06/2009 11:03

I believe KDV (VAT) is not payable on resales

Ozbey


Joined: 04/03/2009
Posts: 304

Message Posted:
01/06/2009 11:38

Stewart, they are not charging you UK VAT.

You are in TRNC and they are charging you TRNC KDV (VAT) which goes (should do!) to the TRNC tax office, not to UK tax office.

I don't know if it is chargeable on estate agent's fees, or at what percentage. You'd have to ask the KDV office that one.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
01/06/2009 11:56

Dear OZBEY

I am not sure why they clearly state VAT on the sales contract...( not KDV )....as you do not know wether it is chargable on estate agents fees or at what percentage...you really have no idea wether they are trying to charge UK VAT or not...but thanks anyway

ozankoys


Joined: 20/06/2008
Posts: 905

Message Posted:
01/06/2009 12:16

The rate of KDV applicable to Estate Agents' fees is 16%.

When buying land/property the once only rate is 5% of either the Contract Value, the Contract Value converted to TL at the exchange rate at date of Contract or the Land Registry Valuation whichever is the highest.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
01/06/2009 12:35

Dear Ozankoys....most helpful...many thanks

tinker


Joined: 14/08/2008
Posts: 156

Message Posted:
01/06/2009 14:52

Hi ..

We bought a re-sale & after the vendor absconded back to the UK with their (our) dosh .. In order to get the koçan we paid all of the taxes ..

Transfer fee ... 6.0% on first buying can use optional right & we paid 3.0% ...

Capial gains tax (Stopaj) .. If vendor is professional 6.25% .. If not 3.5% .. Vendor should pay, we paid 3.5%

VAT is 5.0% .. Only if the vendor is professional .. No VAT paid ..

Stamp Duty .. 5.0% .. Amnesty was in operation & we paid 0.5% (Agreement was to share)

Ozbey


Joined: 04/03/2009
Posts: 304

Message Posted:
02/06/2009 19:14

Stewart, if you think they are charging you UK VAT then call them on it . Of course they cannot charge that. What if they asked you for German and Spanish VAT as well - would you pay that too?

I'm sure they ask for VAT on your sales contract because your contract has been translated into English and they are referring to the local KDV.