kdv, message for Ismet

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
16/08/2008 10:15

I see on a thread here that some people are paying KDV before getting the deeds.

The advice was that the law concerned did not apply, and that as the sale could only be considered concluded on deed exchange , then on no account pay until that happens. Has there been a change in that advice. I cant see anyone ,after all that has been said on here ,doing without question ,what builder or advocate says.

The butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
16/08/2008 11:57

Dear girne 29



We bought our villa from Medview Homes in June 2006 and we had to pay the KDV before we were given the keys. If someone has paid in full for their properties and the builder insists on the KDV before handing over the keys, you don't have alot of choice. We will wait years for our title deeds, if we ever get them.





The Butlers wife.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
16/08/2008 12:02

This is the HBPG latest advise regarding VAT.



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



Cooper

Notsoboredhw


Joined: 15/03/2007
Posts: 1254

Message Posted:
16/08/2008 12:39

We have recently paid our KDV as well because our developer set a date for it to be paid by and if we didnt pay it then a 1% charge would incur each month we hadnt paid it. We paid it via our lawyer and they have been given the official fatura on file. I am just waiting to receive a copy by email so I can see what they have been given!

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
16/08/2008 14:57

In many cases as stated above you have no choice i.e. unless you pay it you do not get the keys. However if you are already have the keys, let them levy 1%, 2% or whatever, it should not concern you as it is not legal to demand it. This is my view.

ismet

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
16/08/2008 14:59

Many thanks cooper, will have to stay more up to date.





Really raging at that cute little manoeuvre.



Butler

'' We will wait years for our title deeds, if we ever get them. ''





I had thought that one advantage of that was not having to pay kdv.,but looks like that has been blown out the water.



Bit annoyed ,as the goalposts have been changed again. Its a bit like one paying income tax now, on the presumption that you will have a job eventually.

They should be honest and stop calling it VAT ,but instead call it FPT,Final Payment Tax,as is not based on getting ownership but rather when you complete payment.

What happens if my property never truly belongs to me, will I get a refund of KDV if after say 5 years I dont have deeds.

It would have been nicer if they had got the money by speeding up deed transfer.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
16/08/2008 15:08

The tax office claims that KDV should be paid when the keys are handed over. However I have stated many times that this demand is not based on good legal grounds and as far as I am concerned it is null and void. This was a move to helpthe developers and it goes to them rather than the tax office.



By the nature of KDV, developers pay KDV on materials and services they purchase. So at the end of the month they are supposed to pay the tax office teh KDV they collected less the KDV they paid out. All the devlopers have huge sums to claim back from the tax office. Hence the KDV paid by buyers will go to offset the amount the deelopers are expecting from the tax office. It was a smart move to please the developers but the directive issued by tax office is not on good legal grounds. I explained this in previous posts.

ismet

simma



Joined: 03/02/2008
Posts: 346

Message Posted:
16/08/2008 15:11

Has any one argued this point with the developer and had a result?

john

cocos


Joined: 04/04/2008
Posts: 129

Message Posted:
16/08/2008 20:30

If you've taken possession we all need to stick together and refuse to pay it. Ismet is very knowledgable on these subjects. If we all refuse to pay what are they going to do? The trouble is the government cant see further than the end of their nose. Which sadly seems to be a TC mentality. The fact they've been in isolation for so long is no excuse. For people who are being refused possession by their builder unless they pay the KDV they are between a rock and a hard place. We all know about the new bullying tactics being employed on a regular basis now by builders etc. The government are aware of these offenders they have the PCO complaints to prove it but they are doing absolutely nothing about it. They dont care.

phylray



Joined: 21/09/2007
Posts: 1727

Message Posted:
17/08/2008 00:23

Yes, I also paid it but feel we were bullied into it by having a 1% interest

levied if we didn't pay by end of month. We still do not know when we are

to get our title deeds which are essential. I heard we would not get them until

all flats were sold on our complex, whenever that is. My local friend said I must

get them!

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
17/08/2008 10:17

In the UK VAT liability i governed by a complex set of rules as to its due date. However if a supplier issues a VAT invoice then the VAT is due. There are rules to cover what happens if an invoice doesn't get issued in a timely manner but as far as I am aware no rules to state when an invoice must be issued.



Now there is absoutely no reason why the rules in TRNC should follow those in the UK, its not even as if UK rules are a paradigm of logic, fairness or simplicity; but it would be interesting to compare the two sets.



What I wonder here then is are there two different arguements here. One between the Government and the developers as to when the latter have to account for KDV and the other between developer and purchaser as to when the former should charge the KDV?



What should be clear is that when collected, the appropriate calculation should be done and after deducting inputs, the balance if any should be paid to the government. (leaving my anarchistic feelings aside). If,as Ismet explained and partially because of the differential rates of KDV that exist ,there is nothing for the developer to pay then I can understand the developers being happy to collect the money as early as possible. The real question therefore is are there any laws or regulations that determine when the developer is allowed to charge and collect KDV, not when it is due to the government.





Paul

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
17/08/2008 20:05

Thanks Ismet, am a lot happier now. Realise your previous advise has not changed and therefore I look forward to having title and paying due tax ,in that order.

,

I must say that I have never been asked to pay this KDV , but then I count myself as being lucky as far as my builder is concerned ,both in quality and in after service.





My previous query remains ,for those that have been bullied into paying,if deeds are not forthcoming after a period of time, say 5 years ,do you think a refund would be forthcoming.

doughnuts40


Joined: 27/07/2008
Posts: 98

Message Posted:
17/08/2008 20:20

Ensure before paying any KDV that your developer/builder issues you with a KDV invoice and receipt. You will need to produce this for transfer of title.

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
18/08/2008 01:34

doughnuts

Bit confused,from what you say it looks like nobody can receive title deeds until they have paid the KDV.

Last communication from my advocate on the subject, said title process was ''in hand'',whatever that means. I dont see how this can be, if I havent paid the KDV,advocate cannot proceed with transfer.



Has anyone else had title transferred recently and can confirm title tranfer was blocked until KDV was paid in advance.