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FrançaisHi
I have a leaseback near Toulouse and have just received forms from my accountant asking me to sign documents allowing them to act as guarantor in respect of VAT (apparently there is a new law as from Sept 2006). Does anyone know what this means? There is an English translation of the forms, but in typical tax speak it is all a bit confusing! Thanks in advance for any help.
Hi Shona
It would seem that the French Government dose not require you to repay any v.a.t.
Its Great news but i dont have much detail on it
Perhaps Seamus might know more.
Seamus
Re. Your answer regarding re V.A.T refund.
Does this apply even if you don't renew the lease say after the first 9 year period.
i.e Does it have to be kept as a leaseback.
John
Came across the following on (leaseback seller websites not permitted)
"With the new addendum to the law this year regarding the selling on of an existing leaseback property, you are no longer obliged to pay back the proportion of the VAT initially saved, pro rata of the number of years of ownership. Instead, you would sell at a relevant market price, minus the equivalent saving according to the number of years of ownership. Sounds complicated but it really isn’t. For example, let’s take some easy numbers here – if you saved 20,000E in VAT when you bought your leaseback property, you own it for four years so you take off 4/20ths (1/5th), which is 4,000E, leaving 16,000E. So you take 16,000E off the current VAT inclusive price to reach a reasonable market price where you have literally ‘passed on’ the VAT recuperation benefit. Voila!"
mccos39477.5930902778Hello Seamus,
Fraid our site is right - the Vat repay period is in fact 20 years at 5%. We are closely involved with French notaires on the resale of leasebacks and so can not afford to make mistakes. :)
We have been dealing with resales at the Berges de Canal which was sold mainly on a 'light' leaseback basis and these are showing capital growth.
In fact we invented the term 'light' leaseback for that development :)
I agree with you when talking of hotel rooms and leaseback developments detined to be hotel like letting units in perpetuity, and have always stated that on my site.
Robt39477.7589930556
Hello Rob,
Indeed, the credit of the VAT, given by the French Tax Administration on purchase, is fully acquired after 20 years, but can you please clarify what do you mean by: "the Vat repay period is in fact 20 years at 5%"
What is this 5%?
thanks in advance