V.A.T.

Barrovian1



Joined: 16/11/2007
Posts: 95

Message Posted:
11/04/2008 16:56

I have just recieved notification from our builder Kensington Development, that VAT is now due on our property at TBV Esentepe.

I thought that you paid this once you have recieved the deeds to the property. Before I pay the amount, I want to make sure that the contractor is not trying it on, getting the money, banking it and gaining interest, before it is properly due.

Anybody else payed this prior to getting their deeds for their property?.

Bob.

spud1


Joined: 22/05/2007
Posts: 544

Message Posted:
11/04/2008 17:40

hi barrovian1 there is post on this subject i also received email from builder for v.a.t. i emailed my solicitor for conformation she informed me that you have to pay v.a.t when you receive your keys to the property get a receipt from builder you cannot get your electric or water connected till v.a.t is paid its a new law only been in a few weeks spud1

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
11/04/2008 17:45

Spud1 is correct

jemjem


Joined: 27/05/2007
Posts: 42

Message Posted:
11/04/2008 21:45

hi spud this as been a head banger for me to . we got notification from kensington for our vat 3 weeks ago . it says in our contract it should be paid when we recieve our deeds , we took possesson of keys in 2006 we are paying our electric and water its all in our name so does this apply to people getting there keys after the new law? bob

Notsoboredhw


Joined: 15/03/2007
Posts: 1254

Message Posted:
11/04/2008 22:53

Head banger eh Bob!!! Think we will pay ours in May and get receipt from Kensington.

jemjem


Joined: 27/05/2007
Posts: 42

Message Posted:
11/04/2008 23:36

we are with you nicky we will pay ours in may when we go out as we wont be going out till september and dont want to pay penalty . the thing i dont understand is they are not pushing this and as far as i know they have not give a final date before they give penalty charge something does not seem right to me but will begrudgingly pay bob (head banger)

Notsoboredhw


Joined: 15/03/2007
Posts: 1254

Message Posted:
11/04/2008 23:45

Hey headbanger - we havent even had the email asking to pay it!!! Will email KD before we go in May to find out the situation. Noone on our forum seems to want to answer whether they are paying or not?? Off to bed to dream about snakes!

Barrovian1



Joined: 16/11/2007
Posts: 95

Message Posted:
12/04/2008 05:55

BHW / jemjem



You have both talked me into it, I will also pay it in May when I return there.



Bob.

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
12/04/2008 10:08

BHW,



How was the snake last night??



MC

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
12/04/2008 10:12

BHW,



How was the snake last night??



MC

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
12/04/2008 10:13

Sorry finge trouble

norths4me


Joined: 19/04/2007
Posts: 269

Message Posted:
12/04/2008 12:10

MC calm down your letting your imagination run away with you.



Back to the subject of vat Elko made a posting about this before not sure if it is still relevant.



Elkos post,





KDV (VAT)



Cyprus Today article on KDV is misleading and wrong. KDV was introduced in 1992 by law number 47. So how can the paper talk about a law dating back to 1959?







I have seen the directive sent out by the Tax Office to accountants asking for the KDV to be paid when the lkeys are handed over and this directive was based on law 47/1992 temporary parag. 1(2). This parag. referred to buildings started before the passing of this law and authorized the tax office to deal with KDV for part of the building constructed after the passing of this law. Thus it has nothing to do with collection of KDV at the time the keys are handed over and thus this directivre has no legal basis and is null and void.

Barrovian1



Joined: 16/11/2007
Posts: 95

Message Posted:
12/04/2008 12:23

Sounds good to me norths4me.

I wont feed the cash cow, until I get my title deeds.



Cheers

Bob.

Notsoboredhw


Joined: 15/03/2007
Posts: 1254

Message Posted:
12/04/2008 12:46

MC - Sorry had to laugh out loud! Not sure how to comment on that one!!!!!! Perhaps No I didnt dream of snakes might be the safest answer!!!!!!!



Nevertheless we will still pay our KDV - even our lawyer has said we do need to pay it so we will do what she advises us (I think!)

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
12/04/2008 16:45

Msg. 12

Norths4me,

The post you referred above is still relevant and indeed I wrote a number of posts on the subject but it is non of my business to campaign for or against something. I state the facts as I see it and leave it at that. I do realize that "Peace of Mind" can be more valuable than money in some instances, so I do not blame people for parting with their money prematurely.

ismet

norths4me


Joined: 19/04/2007
Posts: 269

Message Posted:
12/04/2008 17:18

Elko



Your advise is always welcome, Legally then can a purchaser refuse to pay the vat until they receive their deeds?

jemjem


Joined: 27/05/2007
Posts: 42

Message Posted:
12/04/2008 21:08

thanks all for your comments ,as i always thought in my view they are short of cash and trying to get money upfront i will call there bluff if i pay i think my deeds will never come . im shore if we all got our deeds tomorrow we would pay willingly sorry bhw headbanging again bob

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
12/04/2008 23:25

It is the legal duty of the builder to pay the VAT to te Tax Office. It is a private matter between the builder and the Buyer if and when the buyer pays the VAT to the builder. The minimum requirement is that the buyers should not pay the VAT until they see the receipt that the builder has paid it to the tax office. Make sure that the receipt refers to your building.



I suggest that if any advocate tells you to pay the VAT now, ask them to refer you to the relevant law and paragraph and let us all look at it here to see what it exactly says. As I have been quoted above, the directive from the tax office to the accountants is not based on sound legal grounds.

ismet

norths4me


Joined: 19/04/2007
Posts: 269

Message Posted:
12/04/2008 23:47

Thanks Ismet



Your a star sound advice

spud1


Joined: 22/05/2007
Posts: 544

Message Posted:
13/04/2008 00:37

hi ismet do you think my solicitor is telling porkies to me when she tells me i have to pay vat when i received keys spud1

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
13/04/2008 08:54

Spud1,

I would not put it like that. It is not for me to comment on any particular advocate but please bear in mind the following points:

1. Advocates in Cyprus normally deal with every type of case i.e. criminal, civil and conveyancing and occasionally maritime cases. On the same day he/she may have a murder case, a matrimonial case, theft from employer, recovering unpaid debt, sueing the government for unpaid appropriation, dealing with a tenant for non payment of rent etc. etc. In other words they deal with every aspect of the law and thus they cannot be expected to specialize on a narrow type of cases because Cyprus is a very small place.



2. Most advocates get their customs for conveyancing through referrals from the Estate Agents and Builders. How can you expect them to advise "clients" against the wishes of these people?



3. Only the very experienced and shrewd advocates do check "facts" as they should i.e. research the legal basis of any decision by the government. I am very sceptical on most of their actions.



Following on the last paragraph above, let me give you a few examples:

1. The decision of the government to extend the deadline for registration till 30th April is illegal because it was not done properly but who is complaining?



2. I conducted three trials personally on speeding (I was caught with radar speed traps) and won all three. There are lots of loopholes if you know where to look. Have they closed any of these loopholes? No, they are all intact.

ismet

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
13/04/2008 10:12

Ismet,



Would be good to know what those loopholes were and would they be loopholes in the UK too?



MC

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
13/04/2008 10:32

MC,

The main loophole is legal, the way the law is written. I am sure this does not apply in England because they would not make such a silly mistake. All the other points are really tricks and traps and you really have to be good at cross examination. It cannot be taught, it should come naturally )

Listen to this:A young advocate wanted to defend her brother for speeding otherwise his license was in danger. The judge told her not to bother, as far as he knew only "Ismet" could do it!!! She came to me and I told her not to bother. Years later she became a judge and guess what? I did last defence on speeding and she was the judge. Eventually the Attorney General filed a "Nolle" i.e. withdrawal. I opposed it, appealed, took the matter to constitutional court, won and eventually I was found "not guilty".

ismet

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
13/04/2008 11:05

Well done Ismet

jemjem


Joined: 27/05/2007
Posts: 42

Message Posted:
13/04/2008 12:24

st ismet you are a very noligible person and very easy to understand ,im not a book person but im shaw if you wrote a book i would read it cheers bob

spud1


Joined: 22/05/2007
Posts: 544

Message Posted:
13/04/2008 13:22

hi ismet many thanks for all your advise and i am sure you are right with all you say on v.a.t but if i dont pay v.a.t to the builder he will mess me about regards to electrics ect will still have no electrics connected to site they supply me with a generator when i am there i am out there again on 27th april so i cannot afford to upset him otherwise i could be without lighting ect its catch 21 for me spud1

spud1


Joined: 22/05/2007
Posts: 544

Message Posted:
13/04/2008 13:32

hi ismet ment to say catch 22 not 21 one of my senior moments spud1