Case – Why it is important to understand if a property has chosen to be taxed with VAT
Introduction
Our client purchased land that the seller thought would be covered by a tax option.
The problem
Adding VAT to the sales price would make the transaction untenable, as the customer would not be able to recover the VAT.
How we solved it
We reviewed documents dating back to 2004, when the initial taxation option was proposed, to understand whether the scope of the option had been fully defined. We also looked at the VAT legislation in force at the time and identified the arguments that would subsequently cause the option to tax to disappear even if it had been in place.
The result
We presented our arguments to the seller’s lawyers to allow the sale without application of VAT, an excellent result for our client.
Next steps
If you have a case similar to the one above and would like an expert opinion, please do not hesitate to contact us.
The article Case – Why it is important to understand whether a property can be charged VAT appeared first on Making Complex Simple.
