County Council: do they charge VAT when they sell new house?

Hi,
I recently bought a house in which I lived for about a year and now rent out. Stamp Duty is due now. But if I can prove that I have paid VAT then the net purchase will be below the 127,000 limit under which no SD is due, for investors as well. The city council is telling me I have not paid any VAT but my accountant says that is not possible.

when dublin city council sell new houses, do they charge VAT?

thx

Re: County Council: do they charge VAT when they sell new ho

I dont know if Dublin city Council are vat-registered. If they're not, they are not obliged to charge VAT but they would have paid VAT on the contractor and other bills paid in the construction of the property.

Ring the council and ask them directly.

Vat on property

Did you rent the house before the purchase or purchase from new?

Stu

Re: Vat on property

Hi,
I purchased new, lived there for 10 months and then rented. It seems I am now obliged to pay SD cause I didn't pay any VAT (that would otherwise bring the net value of the purchase price below 127k). Thx

Re: Vat on property

Did you buy this house from the local authority?

If so, there was an exemption from Stamp Duty which is not subject to clawback. Quite indepently of the "owner occupier" exemptions/reliefs from stamp duty, there is no stamp duty upon a transfer from a housing authority. This exemption has been around for years and is not (I am open to correction - woring form memory here) subject to clawback.

Re: Vat on property

Hi, how can I find out more? are you an accountant or can you refer me to somebody? I have just posted the check to the SD dept....

bear in mind though that the county council itself told me that if I rent out then I must pay stamp duty. They also told me I have not paid any VAT.

thx

Re: Vat on property

Pistoia,

I am a practising solicitor. I checked at lunchtime and the relevant legislation is Section 8 Housing (Misc. Provisions) Act 1992, which states as follows:


Exemption from stamp duty.
8.—Stamp duty shall not be chargeable on any instrument giving effect to the conveyance, transfer or lease of a house, building or land by or to a housing authority in connection with any of their functions under the Housing Acts, 1966 to 1992.



So, if you bought your house from the Council (and if in this sale they were acting in their capacity as a housing authority - I can conceive of some circumstances in which they might not be so acting), this would seem to be the end of the matter.

I do not believe this act, or this part of it, has been repealed, but you may want to check with the Revenue.