Paying Back VAT Refunds

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Ped
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Joined: 16 Feb 2008 17:25

Paying Back VAT Refunds

Post by Ped » 17 Feb 2008 13:56

Hi Nigel,

Just a quick but urgent question. We recently got about 65% of our VAT refunded from the Ministry of Finance, however their accompanying letter was in Greek. I promptly took it to our lawyer who loosely translated it for us. He said he 'thinks' that if we decide to sell the apartment within 10 years that we will have to pay the whole of the rebate back.

Do you know if this true? Many thanks for your help. :?



Nigel Howarth
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Re: Paying Back VAT Refunds

Post by Nigel Howarth » 17 Feb 2008 14:32

Hi Ped,

Yes, I'm afraid you'll have to pay back the VAT rebate.

One of the conditions of the scheme is that you must keep the property for at least ten years.

There's a page on my main website about the VAT arrangements. You can find it at: http://www.cyprus-property-buyers.com/l ... ations.htm

I'm sorry to be the bearer of bad news - your lawyer is correct.

Kind regards,


Nigel Howarth
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Ped
Posts: 6
Joined: 16 Feb 2008 17:25

Re: Paying Back VAT Refunds

Post by Ped » 17 Feb 2008 20:06

Thanks for that Nigel, in spite of it being 'bad news'.

This may well be too late given the benefit of hindsight, but what would be the outcome be bearing in mind the developer actually owned the property himself in the first place before he sold it to us?



Nigel Howarth
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Re: Paying Back VAT Refunds

Post by Nigel Howarth » 17 Feb 2008 21:10

It wouldn't have made any difference.

When he sold it to you, it would have been considered a new property (assuming you were its first occupants). When you sell it, it will be considered a 'resale' property - and resale property is currently exempt from VAT.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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Ped
Posts: 6
Joined: 16 Feb 2008 17:25

Re: Paying Back VAT Refunds

Post by Ped » 17 Feb 2008 22:46

All is clear as a bell!

Cheers Nigel, have a good week :)



Nigel Howarth
Site Admin
Posts: 2327
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Paying Back VAT Refunds

Post by Nigel Howarth » 17 Feb 2008 23:41

Thanks Ped - and you.

Cheers,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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