Amount of VAT payable on sale of property (via a company)

Last activity 17 March 2023 by Anastasija_gust

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cherylcollier400New member09 March 2023 15:15:31

Hi,

I bought a property in 2007 via a company (as was required at that time as it came with land).

I paid just over 100k euros for it. I am now looking to sell the property for approx the same amount.

Does anyone know if I will have to pay VAT on the whole of the sale price achieved? or just on any profit (if any) I have made above the original purchase price?

To have to pay approx £20k VAT (20%) on a sale, when there has been no profit seems highly unreasonable. But I'm worried that this might be the case and I end up with a lot less money in my pocket then what I am trying to sell for.

stan4oalMember13 March 2023 19:53:21

Hello,

Unfortunately yes, you still need to pay the 20% VAT. Also, there might be notary fees that need to be paid (depending on your agreement with the buyer) for £100k it should be around £1500. If you want more information or need other help with the sale, you can reach me in a personal message.

Anastasija_gustContributor15 March 2023 16:05:41

109

???? VAT is paid by the buyer. Your company should charge the VAT to them.

What type of property are you selling? There may be no VAT to pay. Depends what your notary akt states.

JohnavannSerial expat16 March 2023 21:52:20

243

@cherylcollier400

Once upon a time I would have said No, but now I have learned how coplicated the issue is. Did you pay part cash? Did you use a notary? If you purchased in a VAT approved company did you clam the VAT back? You should find a good Accnting firm to advise you and present all documents. Do not attempt to play any games as the Tax authorities are cracking down on both Expats and natives very hard. Almost every one I know has had at least an inqury in the last two years. The penalties are stiff and the consequences can be even stiffer. See an attorney and a accountant prior to doing anything. Play everything straight if you are an expat and do not follow the locals recommendations without understanding the potential consequences.

Anastasija_gustContributor17 March 2023 08:41:03

109

@cherylcollier400
Once upon a time I would have said No, but now I have learned how coplicated the issue is. Did you pay part cash? Did you use a notary? If you purchased in a VAT approved company did you clam the VAT back? You should find a good Accnting firm to advise you and present all documents. Do not attempt to play any games as the Tax authorities are cracking down on both Expats and natives very hard. Almost every one I know has had at least an inqury in the last two years. The penalties are stiff and the consequences can be even stiffer. See an attorney and a accountant prior to doing anything. Play everything straight if you are an expat and do not follow the locals recommendations without understanding the potential consequences.
-@Johnavann

Titbits and paranoia are very complicated.

BG VAT is very simple.

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