Maintenance Fees

Cruella


Joined: 16/05/2008
Posts: 63

Message Posted:
16/05/2008 19:56

I live on a development and this is my first year of paying fees, can anyone tell me if VAT is payable on maintenance Fees and if so at what rate will I have to pay.

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
16/05/2008 20:44

It all depends. Some include, some don't. Some say in the contract, some don't. You really won't know until you receive your bill.



VAT (KDV) is charged at 16%.



So assume that there is no VAT and you won't get a shock at the end of the day.

Hilltop



Joined: 28/04/2008
Posts: 636

Message Posted:
16/05/2008 20:49

This should not be a matter for the contract, what does the law say? Is VAT applicable to maintenance charges, or is this a nice little earner for maintenance companies?



HT

Cruella


Joined: 16/05/2008
Posts: 63

Message Posted:
17/05/2008 10:27

Should I pay VAT on wages, Electricity, Water, when these have already got some form of tax included.

millzer


Joined: 12/04/2007
Posts: 978

Message Posted:
17/05/2008 11:07

Yeah good point Larry. What exactly Is Vat payable on, and what isn't? Can any of it be reclaimed on expenditure?



Is there a difference between paying a 'fee' for 'total facility management', as opposed to paying a company to 'adminster' monies on owners' behalfs whereby they simply manage the funds and arrange maintenance providers for you.

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
17/05/2008 11:24

VAT is payable on virtually everything here. The rates vary between 0% (for newspapers) and 16% for the majority of "none essential items". 1% is charged on food, 5% on locally produced non alcoholic drinks, 8% on imported non alcholic drinks, 10% flat rate from restaurants, 16% on alcohol.



With all bills here VAT is shown as a seperate item. Even on till receipts the rate is shown and the amount paid is shown before the bottom line that you pay.



There is no VAT on wages, but you are required to pay social security that is around 14%, so it's a tax on wages paid. Employees are also liable to pay 14% tax from their wages in respect of social security payments.



In the end you will receive a bill and you will pay the bottom line. VAT will be included in that figure.

Cruella


Joined: 16/05/2008
Posts: 63

Message Posted:
19/05/2008 16:26

Maybe I have my blond wig on at the moment but I am still not sure if I should pay VAT or not.



If wages have 28% for SS and Provident fund,

Water should have no VAT.

Electricity { do not know how much) .

If this as all been included in my maintenance charge and is inclusive of the amount charged to me by my contractor, then surely I should not be paying VAT again on the bottom of my statement because this means there is VAT on the VAT.

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
22/05/2008 01:43

We pay 4 months in advance with no vat .

millzer


Joined: 12/04/2007
Posts: 978

Message Posted:
22/05/2008 09:48

Pipie. The KDV is included in your payment, and comes off at the end.



Did you have a nice trip?

Alison


Joined: 21/05/2008
Posts: 49

Message Posted:
22/05/2008 11:10

Hello Pipie

Where are you

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
22/05/2008 13:28

Hi Milzer/Alison .

Yeah we had a fab trip . Complex is coming on well , still issues but i feel sure all will be great , after the meeting in the UK . Are you both going ?