When is VAT payable?

bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
27/07/2008 14:40

Hi,

Can someone confirm if VAT is legally due on handover of property, regardless of whether or not you have got PTP or title deeds?

mint1955



Joined: 30/05/2007
Posts: 988

Message Posted:
27/07/2008 15:04

On my general paperwork from solicitors it says Taxes apart from Stamp Duty which is payable within 21 days of of the date of signing contract are usually payable right at the end of the transaction after your Permission to purchase has been granted and your title deeds being transfered to your name.



VAT @ 5% is to be paid on the sale price at the date of delivery of possession of the property.

Sheila

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
27/07/2008 16:57

As I understood it from Elko, The VAT is due when you get your Kocan.



Many builders try to get it when you take possession, but there is no legal basis for such demands. Just as I understood it anyway.



wyn

mint1955



Joined: 30/05/2007
Posts: 988

Message Posted:
27/07/2008 17:08

Hi Wynardman,

I read it as Land Registry that was after Kocan? Vat at possession now I need to check out.

regards

Sheila

doughnuts40


Joined: 27/07/2008
Posts: 98

Message Posted:
27/07/2008 17:43

We were asked for our VAT on our property and our accountant neighbour said that we could pay it if the builder gave us a registered Invoice and Receipt of Payment so that on transfer of title it was produced as proof of VAT paid. HOWEVER, if your landowner/builder does not give this receipt then DO NOT PAY otherwise you could be left having to pay another 5% unpaid VAT bill in order to get your title deeds.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
27/07/2008 20:11

This is the homebuyers pressure group's opinion :

http://www.hbpg-trnc.net/documents/KDV_0708.html



Cooper

pilgrim



Joined: 11/05/2007
Posts: 1404

Message Posted:
27/07/2008 20:58

Sue, Dos n,t look like we'll be paying VAT for some then!

regards

p

bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
27/07/2008 21:05

Paul I didn't want to pay it till ptp and title deeds are forthcoming. However I do note that the HBPG are now suggesting that it is payable when the buyer takes possession of the property. We have as you know done this.



No pressure from builder but just wanted the facts. Good to hear from you. Give Glenna my regards.

MUSIN M


Joined: 26/06/2008
Posts: 1352

Message Posted:
27/07/2008 23:43

only pay when you have your kocan and after it has been valued ,

bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
27/07/2008 23:52

Thanks everyone for your advice.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
13/08/2008 22:00

Latest advise -

http://www.hbpg-trnc.net/documents/KDV_0708.html



Cooper

joanie1


Joined: 25/07/2008
Posts: 164

Message Posted:
13/08/2008 23:32

I'm happy to pay mine on exchange of kocan - not before - why pay for something you don.t legally own - and don't forget if you are living in your house - which you have paid for - possesion is most of the law - and don't forget squatters rights - just forget about all this bankrupt governments ways of getting money out of us incomers and honest local business people (yes they are having a very hard time too) to pay all this vast army of government and local government officials - shades of Gordon McBroon and his Highlanders.

Instead of all this moaning is there any way that those of us who have chosen to live here (we know nobody asked us to!) to get together with honest local and expat business - I don't mean the black market taxis(private uninsured cars to Ercan and Larnaca who cheat the local taxis) and ensure a better deal for all. It is a well known fact that the higher taxes are the more people employ fancy accountants to evade them. Anybody out there with knowledge of accountancy and taxation (I honestly have not a clue - never had enough money to necessate employing an accountant) - who could sort this lovely little country's economy out please contact Ali Talat - I think he'd be happy to listen especially with his talks with President of ROC - he has financial problems too.