English
FrançaisHi,
I have received a vat bill of 3000euros in relation to the rental income on my leaseback, it is ridiculous as the rental income doesnt even cover the french mortgage, plus we have accountant fees, tax fonciere and continually top up the mortage to cover it. Anyone in similar situation?
Do you still receive VAT with your rent? Have you been submitting a tax return each year and if so have you been submitting a 3517S showing the rent and VAT received and the VAT you pay on expenses. You only owe the tax office VAT if the VAT you receive is greater than the VAT on expenses and then you only pay the difference. It sounds like last years 3517S is incorrect. What does it say? Have you asked your accountant about this? Is it possible you have owed VAT for several years and this is the cummulative amount?
Seamus
Seamus,
we have an accountant in france and submit returns there, the query I have is for the returns in Ireland and the figure relates to what the revennue are calculating we owe in income returns based on the rental income we receive on the apartment. It just seems to me that we are being taxed for the same income in both France and Ireland.
How can anyone with a leaseback be liable for VAT in Ireland. I dont think anyone with a leaseback is aware of this. Dont we just declare what rent we receive in France on our Irish income tax return less the expenses.
Are we separately liable for VAT also?
Oh lord this nightmare jsut gets worse.
Up to 2012 think most non residents were receiving the 10% TVA collected on rent from their operator and you paid that to French givernment on your yearly CA12 TVA returns.
Since 2012 the operator has collected the TVA on rent for non-residents but paid it on your behalf but not sure how you would get proof of this. When you have proof of TVA payments paid on rent you can submit to irish revenue to prove TVA was already paid on whatever rental income you declared.
You cannot pay french VAT on your Irish tax? Someone has got something wrong!
Im not an expert on VAT/TVA but it is a sales tax on rental turnover and completely seperate from your personal tax on rental income. You can also claim back TVA paid on expenses related to rental business etc
It may have something to do with letters Irish revenue recently sent to tax payers re their focus on income earned overseas. I would think you just need to prove that TVA was already paid on the rent in France.
It is of course a mistake as they think no TVA has been paid on that income but the onus may be on you to prove that.
https://en.wikipedia.org/wiki/European_Union_value_added_tax