If anyone has got out of a lease agreement with their lease company and then sold their property-have ye been deducted any of the Vat return received on orginal purchase of your French leaseback property?
If anyone has got out of a lease agreement with their lease company and then sold their property-have ye been deducted any of the Vat return received on orginal purchase of your French leaseback property?
Comments
polaris
I ended a lease with PV to
3 June 2021I ended a lease with PV to sell a property which had 6 of the 20 years remaining. I had to repay the outstanding VAT as part of my next French tax return. There is an official impots Govt form your accountant will submit which details the amount you need to repay. You have 3 months to repay it.
Martymatters
I believed the law changed in
23 June 2021I believed the law changed in this regard in 2012? so when you say you had to pay the last 6 years, did this equate to 6 % of the original purchase price? (1% per year if 20% VAT) ?
macdara
when you stop leasing you
23 June 2021when you stop leasing your apartment under lmnp leaseback scheme you are liable to payback purchase-vat pro-rata. eg if you got out of lease in year 17 then 3/20th of the original TVA payable. Howeevr you could get out of lease with major operator and still operate yourself under lmnp-leaseback scheme for a few years once you meet same lmnp conditions
Sheila
Vat Repayment on Sale
16 July 2021Vat Repayment on Sale
If I sell the property with the lease intact am I still liable to repay the VAT for the outstanding years , in this case 3 years.
I am wondering if I am liable for 3/20 of original VAT
macdara
If new buyer takes over lease
16 July 2021If new buyer takes over lease then they will fulfill remaining yr 17 to yr 20 so no vat for you to pay.
Sheila
Thanks for the response
17 July 2021Thanks for the response
this was my thought also and that of the sales agent. However the French accountant who makes our yearly tax return was of the opinion that 3/20 would need to be repaid.
I have asked for further clarification
Martymatters
I have just sold my leaseback
1 November 2021I have just sold my leaseback at an enormous loss and there is no way I am paying back any VAT. Any update on this here as there is 5 years out of the 20 years remaining and the new
owner has taken on the lease that is existing. Anyone get confirmation or had to pay their VAT back even if transfer of lease occurs? /Martina
Eddy Regnier
Hi Martina,
3 November 2021Hi Martina,
If you have sold the property with the lease in place and the documents of the sale shows the new owners continue the lease you have no VAT to pay.
Regards,
Eddy
chelseablu
If the new buyer keeps the
6 November 2021If the new buyer keeps the lease, then no vat needs to be paid back.
How long did it take to sell?
Martymatters
It took us more than a year
11 November 2021It took us more than a year to find a buyer and another approx 6 mths to finalise everything..the whole process is very slow and typical french with heavy bureacracy..thank god I don't have to deal with this anymore..worth it for the my sanity!!