The VAT incurred on services and fixed assets prior to the VAT registration of the business (company or self-employed person) can be claimed as follows;
VAT returns must be submitted 40 days after the period or quarter end.
Not paying the VAT amount due on time (through the quarterly VAT returns) renders immediately payable 10% penalty and interest on the amount payable.
This penalty should always be avoided as it is the most significant penalty imposed by the Income Tax and VAT Office; as a percentage and in absolute terms.
Imports and exports of goods with value more than Euro 100,000 and Euro 55,000 in a calendar year must be reported via the EU Intrastat mechanisms.
Services offered by an EU VAT registered member to another EU VAT register member requires registration with the EU VIES system.
Reduced VAT rates apply on the acquisition and/or construction of residences for use as the primary and permanent place of residence. Such conditions vary each year so it is better to consult with us before signing up the property purchase agreement.
Renovation and repair of private residences is carried at the reduced rate of VAT of 5%
The reduced rate of 5% applies for renovation and repair of old private residences subject to the following conditions:
Are currently reduced by 50% until further notice by the government.
Do not apply if the transaction is subject to VAT
VAT does not apply on resales whilst a 19% VAT is charged on new properties.
VAT is a very complex tax area which should always be discussed with VAT experts. The above information serves only for informative purposes. Please contact us and we will advise you accordingly.