VAT/ KDV when is it due ?

corbytown


Joined: 05/08/2008
Posts: 327

Message Posted:
06/07/2009 14:13

I know that this must have been posted umpteen times before, but when is the final vat payment due ?

We asked our solicitor about PTP and the reply was:

We have checked your file and unfortunately, your permission to purchase has not been granted yet. Transfer of title cannot take place and taxes cannot be paid until your permission to purchase is granted by the Government, a process which takes on average 2 – 2 ½ years to complete. When your permission to purchase has been granted, we will contact you.



Are they saying that VAT/KDV does not have to be paid until the PTP is granted ?

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
06/07/2009 14:18

yes corbytown,you pay the vat just as you are getting your deeds,dont need to worry until then.

kaiserphil


Joined: 14/12/2008
Posts: 1096

Message Posted:
06/07/2009 18:31

I thought that VAT/KDV was payable now when the house is taken over. Or have I misunderstood?

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
06/07/2009 18:33

As from jan this year..it is now payable on completion of your property,,please do not think you have another couple of years to pay..ie when you get your deeds

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
06/07/2009 18:45

thats only the 0.5% of the stamp duty charges so that you can register the house in your name to prevent it from being resold again,or it like that when I bought mine last year.Wouldn't be surprised if its changed again .

sunnyday


Joined: 14/03/2008
Posts: 269

Message Posted:
06/07/2009 20:37

From early 2008 VAT (or KDV) became payable when you took possession ie got the keys. This applies even if you took possession before then. Property transfer tax is payable when the deeds are transferred. The fact that you may not have your permission to purchase when you take possession is not a valid excuise to avoid payment of VAT. This was confirmed to me last year by several local solicitors.



However not all builders/ developers are demanding payment of the VAT on possession for various reasons.



Stamp duty was always payable on new contracts but not always enforced until they started to be registered early last year.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
06/07/2009 21:04

Hi corbytown,



It depends on the developer, when we bought our property in 2006 we had to pay VAT on release of our keys

We did not receive our ptp until October 2008. Lots of builders are now asking for VAT on posession of property since a new law was passed in 2008.



The butlers wife

andy-f


Joined: 03/05/2009
Posts: 1256

Message Posted:
06/07/2009 21:31

we have just had our final bill, in the break down was the KDV/VAT at 5%. when we first decided to buy we were told we would only have to pay this tax about two years after getting keys but it now becomes due as soon as you take posession. .

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
06/07/2009 21:32

This is the HBPG's take on VAT ( KDV) - http://www.hbpg-trnc.net/documents/KDV_0708.html



Cooper

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
06/07/2009 22:09

ok everyone,I am sorry,I was going by my own exprience.

phylray



Joined: 21/09/2007
Posts: 1727

Message Posted:
06/07/2009 23:59

I paid my KDV last year but solicitor told me I should not have paid it yet.

More than 2 years since took possession, but he told me not to pay any more

money without speaking to him first. As I understand it you pay it when you get

your title deeds. He says companies like to get the money in & pay to the gov.

pretending they have paid it, when it is us that have paid it! Our developers put

pressure on us to pay it, threatening a charge if it was not paid by certain date.

Pretty disgraceful if that is the case.

corbytown


Joined: 05/08/2008
Posts: 327

Message Posted:
07/07/2009 10:28

The reply (at last) from my solicitor:



Previously, it was customary for VAT (KDV in Turkish) to be paid on transfer of title to the property into the name of the purchaser. However the Tax Office has recently issued a directive to all construction companies stating that VAT must be collected on completion of the construction and delivery of possession of the property to purchaser instead of transfer of title. This directive has been issued relying on a very old VAT law which has rarely been enforced by the Tax Office in the past.



In line with this directive, many vendors are therefore now invoicing their clients for VAT, which is currently 5% of the purchase price of the property, on completion of the construction. Many people have criticised this new directive by the Tax Office because they fear that if the VAT is paid by a purchaser to a construction company on completion, the construction company may not account to the Tax Office for it. On transfer of title,



cont

corbytown


Joined: 05/08/2008
Posts: 327

Message Posted:
07/07/2009 10:29

On transfer of title, the Tax Office requires proof that the VAT has been paid before it will allow transfer of title to take place. If the construction company has not paid this money to the Tax Office, the purchaser may not be able to take title without this being paid. Some pressure groups are lobbying the Government to try to change this practice so that VAT can be paid directly by the purchasers to the Tax Office on completion of the property instead of to the construction company to ensure that there is no risk of the construction company failing to account to the Tax Office for the VAT. However, this is not possible at present.







We are currently advising our clients only to pay VAT to the construction company in return for an official invoice (known as a ‘fatura’ in Turkish) from the construction company. This should bear the stamp of the Tax Office on it and should state the amount paid. Once a construction company has issued an official invoice, it must account for tha

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
07/07/2009 10:33

This is exactly what I said in message 4



FYI....pay the money to your solicitor....ensure he gets a reciept with a stamp from the tax office as proof it has been paid..then you will have no problem....DO NOT PAY IT DIRECT TO YOUR BUILDER!