I want to pay back VAT on sale of property on VAT I reclaimed on Investment property

A

Adecco

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I bought an investment property in 2006.

At the the time investors were allowed to reclaim the VAT on the purchase (i.e. 13.5% of purchase price) as long as i then included VAT (at 23%) of my rental income and paid thsi over the the VAT man on a bimonthly basis.

I have been forced to sell by the bank.

At the time i reclaimed c. €50k - over the years i have paid out c. €20k.

I need to find out how much i owe the VAT man - and what are the steps involved in paying him back.

I believe there is some formula used? (Its not just a case of deducting the 20k from the 50k as far as i know)
Also - do i need to drop out of VAT net? How do i do this?
If so do i do this before or after the sale of the property?
Anything else i need to know.

Its proving impossible to get this info from the revenue.
 
My take on it is. Assuming its residential property, commercial property is different as you can opt to tax.

If you cancel your waiver before sale then you have a cancellation adjustment; VAT reclaimed - VAT repaid. €50,000 - €20,000 = €30,000.

If you sell the property prior to cancelling the waiver then you have a Capital Goods Scheme adjustment VAT reclaimed x (number of years plus 1 of life left /20). €50,000 x 12/20 = €30,000 followed by a cancellation adjustment.

€50,000 - €20,000 - €30,000 = 0

So in your case I don't see a difference in cancelling the waiver prior to sale or at the point of sale as both are €30,000.
 
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