English
FrançaisFor the first time I have been told by my French accountants that I need to pay VAT on my rentals receipts. Apparently in the early years of ownership the VAT liability (I didn't even know i would have one on the rentals) was offset by the various charges, particularly notary fees. As these have now been exhausted I will have to pay a certain amount of VAT going forward. Is this correct please?
if you have a mortgage on the property you can deduct that from your income.
If you have a coproprietaires owners meeting, you can deduct travel accommodation and meal costs ( but not lift passes while you wait for the meeting to start!)
Yoy can deduct your accountacy costs and and other legal costs involved in finding out what you options are ( I have done all this and will be taking my apartment back at the end of our 11 year lease, but watch out, you may be liable to an 80000 euro indemnity!)
mail me for more details if needed: info at eio dot co dot uk
Hello Hotsun
I would be very interested in knowing more about getting the property back at the end of 11 years and the potential cost you have mentioned. Not clear on your email address. axed41066.6880671296
Hi Hotsun
I have only recently found out about this right to compensation for the management company for non renewal of lease. We signed a 9 year lease and were told that after that we could choose whether to renew the lease or not ( just as many others were told too).
Our management company has gone into sauveguard measures (so it is bust but not in liquidation yet) and we have been asked to sign an addendum accepting less rent and taking on all the charges. If we don't sign then we have been told our lease will be cancelled.
So we now have the 'opportunity' of having our lease cancelled and no compensation due to the management company.
So I have a couple of questions that I hope you can help with :
1. Does the TVA need to repaid in one amount - or can it be repaid over several years ?
2. Is your apartment now one of the few in the building that is not on lease back ? If yes, how does this work - do you still pay the same property charges, have the same access to communal areas etc
Thank you for your help
i dont want to post my email address as i end up getting;lots of spam from blog robots who trawl through it all
, so if AXED could remove his post, where he wrote my email for all to see, that would be great, please contact me by email for specific info,.
If you are already registered for VAT, ( which you should be to get out of the VAT in the first place), then if you give carry on renting the apartment out yourself, there is no vat to be paid back, if not I think it needs to be repaid at teh next vat declaration after your contract ends, which is usually May
info at eio dot co dot uk
I will pay my share of charges, but my guests and me dont get to use the reception and pool, but I do get to use the corridors, lifts, car park, ski lockers, cave etc etc
cheers
I have edited my post to remove your email address
- apologies
i thought only subscribers could see it
will they not see your email address at your 2 May post then and the post above
thats great axed, thanks.
drop me an email and will fill you in.
cheers
I beleive the situation ia as follows:
The rental charged by the management company consists of 2 elements:
Habitation costs. This is by far the larger of the 2 elements and the TVA is charged at 5.5%
Services costs.This is a smaller element and the TVA is charged at 19.6%
The TVA charged, is charged on top of your rent.In other words, you do not pay it out of the rent that you receive.You should have received more than the rent stated on your lease because of the TVA charged by the management company.It should not cost you anything.
Thank you for the response. According to my accountant it is normal that after the various up front costs such as notary fees etc are taken off that there will be a TVA liability on the rentals. Like so many other "costs" this is yet another element never mentioned by MGM. I have spoken to MGM and said that buyers should be made aware of this as normally one would only expect to pay income tax on rental profit not TVA.
Do you know if "charges" include bank interest on any mortgage on the property and life insurance costs please?
My biggest cost is my mortgage interest.
thank you - this is useful to understand