English
Françaisi have recently bought a leaseback studio in Torcy near Paris. I am not sure whether or not I or the accountant is to apply for the TVA.I have written to the accountant on two occasions but she does not answer my e mails. I have found that the French do not answer most of the time and when they do they don not reply to the questions asked. I am finding this very frustrating. In so far as the TVA application is concerned as i do not know what is happening I thought it would be best if I applied for the TVA myself.However I am concerned that if the application had been made on my behalf and then I reapplied I could be taken up for fraud.Its all gone a bit daft. Can anyone advise me please as I am getting nowhere with the French
Dear Seamus
I have found your site extremely useful and informative.
I am in the process of potentially buying a leaseback but I have found the
position regarding the VAT situation and rent quite confusing. I gather I
would be paid rent, in my case 4% of the capital price of the property (less
VAT) each year. This amount would then be subject to 5.5% VAT. The
French accountant will sort this out to some extent, I just have to
complete a declaration. But, if I try and understand it, I get the rent
without VAT added on & I presume the accountant pays the 5.5% (that I
never get) back to the French Tax service. If this is the case then that
seems relatively straight forward.
However, there is also mention of "rent in kind". This refers to the time I
spend in the apartment. Obviously, the developer does not get rent and
so I get less from them and a prorata deduction is made from my starting
4%. Easy so far. But the lease contract goes on to say that this represents
a rent-in-kind which seems also to be subject to VAT. "This can be set
against" the VAT involved in the Cash rent that the developer pays me. At
this point I get lost.
Clearly this VAT and Rent thing is a basic and recurring feature of
leasebacks but I am struggling to find anyone who can enlighten me as to
what it really means and what actually happens
i'd be grateful if Seamus or somebody well-used to the system could give
me a better clue.
Thanks
Ian