K.D.V. - V.A.T.

Newboy


Joined: 21/02/2008
Posts: 80

Message Posted:
17/03/2008 12:08

Seems the government are at it again, the need for more money. They are now looking for your KDV (VAT) before you receive your deeds. Aparently this is an old law revived. See the HBPG for firther details.



Ray

orangekazzie



Joined: 31/07/2007
Posts: 1091

Message Posted:
17/03/2008 12:27

Hi Newboy

I thought this was always the case. I think our cost was about £80.

Karen

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
17/03/2008 13:34

dont have deeds,therefore dont see why should have to pay kdv on something that although I have paid for I dont own.The owner of my property is still legally the vendor.Why all these changes to get the money in,is the economy in that bad a state?

Orangekazzie.

Are we talking about the same thing? KDV is as far as I know 5% of assessed value or sale price ,whatever is higher( the higher value bit is another recent change to our detriment).Just wondering about the £80 you mention,as kdv would work out at £5000 for property of £100,000,and was paid at same time as deeds changed from vendor to buyer, after assestment.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
17/03/2008 14:06

for my comments on KDV please see msg. 9 at http://www.cyprus44.com/forums/1796.asp

ismet

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
17/03/2008 14:13

I am simply refusing to payout another penny until i see sight of my deeds .

larry f


Joined: 29/01/2008
Posts: 116

Message Posted:
17/03/2008 14:21

Its written into my contract that I pay the vat when I receive the deeds

As far as Im concerned thats what I will do!

saucyboy69


Joined: 09/02/2008
Posts: 111

Message Posted:
17/03/2008 15:13

Larry F, Pippie



Totally agree i will not pay KDV until i get my PTP and deeds it's up to the goverment to speed up the PTP process and make sure that the builders pay their taxes not just milking the same old cash cow!!!

saucyboy69


Joined: 09/02/2008
Posts: 111

Message Posted:
17/03/2008 15:17

Elko,



Just read your post on the other thread thank's for the information i and many others need people like yourself who can help us through the TRNC property purchase minefield.



Thanks again



Pete,

jmg171


Joined: 19/05/2007
Posts: 183

Message Posted:
17/03/2008 16:59

Have read your post on kdv.

Thank you

jmg

Notsoboredhw


Joined: 15/03/2007
Posts: 1254

Message Posted:
17/03/2008 21:31

Read latest press news on KDV on HBPG!

spook


Joined: 23/01/2008
Posts: 244

Message Posted:
18/03/2008 00:14

See message 4 by elko2 who is well informed, we should all wait and see what is the outcome of Marion,s meeting with the PM.

My contract states that the vender is responsible for all taxes other than the transfer fee (3%) although the vender is trying to put pressure on to pay his taxes or no deeds, my comments to this suggestion are unprintable

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
18/03/2008 21:03

Hi everyone, I've just been told that kdv is still payable on deed transfer. The info came from Remax.

John.

Notsoboredhw


Joined: 15/03/2007
Posts: 1254

Message Posted:
18/03/2008 23:04

Simma - me being dense - does that mean we pay it twice?? Once now (that we have been asked by our developer for it) and again once we get title deeds?? very confused Boredhousewife!

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
18/03/2008 23:09

Hi Nicky, no not at all. What they are saying is that it is only payable on deed transfer. Hope this helps.

John.

paul90


Joined: 07/11/2007
Posts: 350

Message Posted:
19/03/2008 10:03

The payment of VAT depends on two factors:

• Whether or not the transaction is subject to VAT.

This depends on whether the Vendor is deemed by the Tax Office to be a ‘Professional Vendor’ (i.e. whether the transaction is of a commercial nature or for profit).

If the Vendor is deemed to be a Professional Vendor, the transaction will be subject to VAT.

If the Vendor is a private individual, not a Professional Vendor, the transaction will not be subject to VAT.

‘Vendor’ in this context, means the person who has title to the property, not simply possession/Contractual ownership of the property. So, with re-sales for example where the person selling the property does not have title to the property, but is simply assigning his or her Contractual rights in the property to the new Purchaser, the fact that he or she is a private individual not a Professional Vendor is irrelevant. If the person who is registered on the title deeds as the owner is a Professional Vendor, VAT will be payable.

• Terms of the Contract of Sale. If the transaction is subject to VAT, who will actually pay the VAT depends on the terms of the Contract of Sale.

• VAT FOR PROPERTY TRANSACTIONS - 5%. Please note that some Vendors

require the VAT to be paid on the actual sale value of the property as stated in the Contract of Sale on the date that possession of the property is delivered to the Purchaser.



You should check the terms of your Contract of Sale on this point.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
19/03/2008 22:07

Re. Msg. 15

Paul,

Congratulations, well put and I agree 100% with msg. 15.

The new law about registration of Estate Agents defined "Professional Seller" as those who sell more than three properties in a year. Professional sellers have to employ the services of an Estate Agent and this definition was made in that respect. How does the tax office define a professional seller with respect to VAT?

ismet

orangekazzie



Joined: 31/07/2007
Posts: 1091

Message Posted:
19/03/2008 22:39

Girne29

Sorry I was referring to the charge they make when you collect your Kocan from the Land Registry. Its yet another charge you have to pay but in the scheme of things its a small cost.

Karen