VAT payment for new build apartment

Stoney


Joined: 12/07/2010
Posts: 11

Message Posted:
18/07/2010 09:28

Can anyone please help regarding the issue of VAT payments for new build apartments.



We are being asked to pay this to our builder direct and not some government office/dept.



Is this correct or just another way of getting extra monies from us.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
18/07/2010 09:41

Please see this notice from the HBPG - http://www.hbpg-trnc.net/documents/KDV_0708.html

cyprusman3



Joined: 09/06/2009
Posts: 297

Message Posted:
18/07/2010 09:41

Yes the builder is the one you pay the vat to as he can submit a copy of the bill and balance it off at the end of the vat period, the builder should give you a receipt for the total amount you paid for the apartment and the vat is detailed in that receipt and it is also proof that you have paid it. It is like going to a shop and buying a TV you pay for the TV and the vat too. same thing

BigBen


Joined: 30/11/2008
Posts: 150

Message Posted:
18/07/2010 11:00

VAT is payable, on taking possession, you pay it to the builder, you must ask for a VAT invoice, you will need to produce the Invoice at the time of transfer of title. Do not mistake receipt by invoice.

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
18/07/2010 11:19

When we bought our new build apartment 4 years ago the rule was that you paid KDV ( VAT ) when you got your title deeds.



We took possession,and after about 2 years our builder said that the rules had changed and the Govt were requesting VAT upon possession and not upon receipt of title deeds.....presumably because most people were waiting 3 years+ for deeds to be issued.

We refused to pay...arguing that we shouldn't have to pay VAT on something we don't officially "own"...a tenuous argument in the TRNC but there you go !

To be fair to our builder,he accepted our argument and we didn't pay the VAT.



To cut a long story short,we never got our title deeds because we never got PTP ( Pre-74 Turkish Title Deeds ) ,and so we never paid the VAT.

We were still able to sell our apartment and the new owners are responsible for the VAT on their purchase.

Stoney


Joined: 12/07/2010
Posts: 11

Message Posted:
18/07/2010 13:00

The issue we have at the present is that the builders will not hand over the keys to our apartment until we have paid the VAT.



Our solicitor has asked the builder to hand over the keys but he refused point blank till the VAT is paid to them.

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
18/07/2010 13:14

Stoney....then based on coopers link to HBPG in message 2 then maybe you will have to hand over the VAT.



Is your builder definitely a "professional seller"..ie built more than 3 dewellings?



Do make sure that if you DO hand over the VAT to him you get an official Invoice/Fatura to show that you are in fact paying the VAT and not just paying him say £4000 for another stage payment !



Just another thought....do you have your PTP yet?

If so, it may be a good idea to try and use the VAT payment to get the title deeds off him !



Good luck.

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
18/07/2010 13:33

Exchange money/receipts via your advocate. When you get the receipt of payment, he gets the VAT. If you have PTP use the exchange as part of the title deed handover.

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
18/07/2010 14:17

I insisted on paying my vat the day I got my deed and that is what happened .

You have to learn to be a clever as these lot !!!

Stoney


Joined: 12/07/2010
Posts: 11

Message Posted:
19/07/2010 14:39

Unfortunately we have found out that there is still a mortgage on the land.



The builder is adamant that he will not hand over the keys till he gets the vat payment.



He has been asked by our advocate but is still insistant.



Will take the advise above and make sure i get the correct kind of reciept.

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
19/07/2010 19:17

Arrange to pay the VAT with the builder. Have you found out how much the mortgage is for? Ask your advocate about putting an injunction on the memorandum so that you are at the top of the applicants, as its a first come, first served basis.



Memorandums are becoming common practice. Its scandalous.