Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

VAT payable

  • 10-03-2016 10:06am
    #1
    m'lady
    Registered Users, Registered Users 2 Posts: 1,859 ✭✭✭


    Would anyone know anything about VAT payable on the sale of a house. A friend is waiting to sign contracts (which he's actually received), but his solicitor has said 'the solicitors for the vendors are checking the position in relation to the vat payable on the property for sale with Revenue commissioners',

    I've looked this up and to me it seems vat is only payable when it's either a new house through a builder or less than 5 years old, but I don't know!
    Would anyone have any knowledge about this that could advise me?


Comments

  • #2
    Michael D Not Higgins
    Registered Users, Registered Users 2 Posts: 7,223 ✭✭✭Michael D Not Higgins


    VAT is only charged on new houses. There's a 2 year and a 5 year rule to determine what's new.

    Within 5 years after completion of the house the first supply is considered new.
    Within 2 years of occupation, the second and subsequent supply is also considered new.

    A developer or builder is outside this, and VAT is always charged.


  • #3
    m'lady
    Registered Users, Registered Users 2 Posts: 1,859 ✭✭✭m'lady


    Michael D Not Higgins wrote: »
    VAT is only charged on new houses. There's a 2 year and a 5 year rule to determine what's new.

    Within 5 years after completion of the house the first supply is considered new.
    Within 2 years of occupation, the second and subsequent supply is also considered new.

    A developer or builder is outside this, and VAT is always charged.

    Thanks for your reply. That's exactly what I thought.. He spoke with his solicitor there a few minutes ago and she's saying that they are wanting to make sure the previous owner (it's a repossessed house) didn't 'claw VAT back' and if so he will be left to pay it?! It's about 8k.
    The solicitor did say it's highly unlikely, but she's just making sure. He is signing the contracts but she's putting a clause in them that he can pull out if there's the VAT owed.. I'm still confused!!


Advertisement