VAT on apartment and US citizen--am I exempt?
Dec 16th, 2007, 06:00 PM
#21
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I'll admit to not being an expert on this, but I'm curious about all the replies that your nationality means nothing and you are only exempt if you take the product home with you.
I've done those car leases (essentially a purchase/buy back situation) several times, and because my nationality is US -- and not a member of the European community -- I am EXEMPT from paying VAT on the car. I don't take the car home with me, yet I am still exempt. The whole point of those leases is that they are able to save the VAT taxes both on the "sale/lease" to those outside Europe and then resell the car as used which does not incur a VAT tax. NO?
I realize this has nothing to do with the hotel situation -- just curious.
I've done those car leases (essentially a purchase/buy back situation) several times, and because my nationality is US -- and not a member of the European community -- I am EXEMPT from paying VAT on the car. I don't take the car home with me, yet I am still exempt. The whole point of those leases is that they are able to save the VAT taxes both on the "sale/lease" to those outside Europe and then resell the car as used which does not incur a VAT tax. NO?
I realize this has nothing to do with the hotel situation -- just curious.
Dec 16th, 2007, 11:16 PM
#23
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> I am EXEMPT from paying VAT on the car.
Wow, what makes you so special. If it's not exported, you pay VAT whoever you are. (Possible refund for businesses later)
If it's used and has not been owned by a business there's no need (possibility) to specify the amount of VAT included in the price.
If it's sold from one business to another, VAT is always specified. A business wouldn't want to buy a car where this isn't possible!
If it's a private purchase you pay "your share" of the original VAT amount, through the higher price the seller wants. Of course, nobody will talk about VAT in that case.
Wow, what makes you so special. If it's not exported, you pay VAT whoever you are. (Possible refund for businesses later)
If it's used and has not been owned by a business there's no need (possibility) to specify the amount of VAT included in the price.
If it's sold from one business to another, VAT is always specified. A business wouldn't want to buy a car where this isn't possible!
If it's a private purchase you pay "your share" of the original VAT amount, through the higher price the seller wants. Of course, nobody will talk about VAT in that case.
Dec 17th, 2007, 12:25 AM
#24
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The only reason I can think of for this is that they probably ask everyone, regardless of nationality.
Registered charities (UK) are exempted from VAT charges on property rentals for charitable purposes, whether it's a single day hire or a long-term lease. Other than that, I can't think of any other normal VAT exemptions on properties, but there could be some aspects of international law that I'm not aware of.
Registered charities (UK) are exempted from VAT charges on property rentals for charitable purposes, whether it's a single day hire or a long-term lease. Other than that, I can't think of any other normal VAT exemptions on properties, but there could be some aspects of international law that I'm not aware of.
Dec 17th, 2007, 03:35 AM
#25
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"because my nationality is US -- and not a member of the European community -- I am EXEMPT from paying VAT on the car"
No, it's because you are not resident within EU - nationality doesn't come into it. If you have a work visa in EU, you won't be eligible for sale/buy-back scheme.
No, it's because you are not resident within EU - nationality doesn't come into it. If you have a work visa in EU, you won't be eligible for sale/buy-back scheme.
Dec 17th, 2007, 04:24 AM
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"> I am EXEMPT from paying VAT on the car.
Wow, what makes you so special. If it's not exported, you pay VAT whoever you are. (Possible refund for businesses later)."
Logos, go check your facts. The AutoFrance, Peugeot, and various other "purchase/lease" plans are ONLY available to citizens from outside the European community. I can get one. You can't. Sorry, if you think that means I'm calling myself "special", but I guess that IS what it means, because like I said it ONLY works with foreginers. I can lease the car for 17 days or more and then they sell the car to an agency and the original "owner or dealer" of the car (Sodexa is the one I've gone through with Auto France) saves the amount of the VAT -- which is the only reason they make this plan available. I don't know all the specifics, but I DO know that this is a plan which is done BECAUSE it can be written to "foreigners" only, saving the VAT. And no, those cars are generally not then exported.
OK? Check it out if you don't believe me.
And Alec, now you're playing games with semantics. Yes, I suppose technically a Frenchman who is now a resident of the US, could also be eligible for that lease plan. So it is a matter of where you live, not necessarily where you were born or who your parents were. OK? Sorry, I was going for the obvious that MOST Americans do NOT live in Europe or have work visas there. There's always someone to think of the rare exception. Thank you for doing that.
Wow, what makes you so special. If it's not exported, you pay VAT whoever you are. (Possible refund for businesses later)."
Logos, go check your facts. The AutoFrance, Peugeot, and various other "purchase/lease" plans are ONLY available to citizens from outside the European community. I can get one. You can't. Sorry, if you think that means I'm calling myself "special", but I guess that IS what it means, because like I said it ONLY works with foreginers. I can lease the car for 17 days or more and then they sell the car to an agency and the original "owner or dealer" of the car (Sodexa is the one I've gone through with Auto France) saves the amount of the VAT -- which is the only reason they make this plan available. I don't know all the specifics, but I DO know that this is a plan which is done BECAUSE it can be written to "foreigners" only, saving the VAT. And no, those cars are generally not then exported.
OK? Check it out if you don't believe me.
And Alec, now you're playing games with semantics. Yes, I suppose technically a Frenchman who is now a resident of the US, could also be eligible for that lease plan. So it is a matter of where you live, not necessarily where you were born or who your parents were. OK? Sorry, I was going for the obvious that MOST Americans do NOT live in Europe or have work visas there. There's always someone to think of the rare exception. Thank you for doing that.
Dec 17th, 2007, 05:53 AM
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So are you seriously saying you didn't know anything about these car lease "schemes" that are bantered about and recommended here all the time for American or Canadian tourists staying longer that 17 days in Europe?
Dec 17th, 2007, 07:23 AM
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Well, I'm the one who started this all. I got an e-mail back from the agency saying I need to pay VAT. I have no idea what the guidelines are or why they originally told me to see if I am exempt.
Dec 17th, 2007, 07:32 AM
#31
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>>Well, I'm the one who started this all. I got an e-mail back from the agency saying I need to pay VAT.<<
So that means that you're paying 20% or so more than the identical property next door if the "base" rate of the two are the same and the owner of the next door property is a small buisness person. I think I would find some property to rent that didn't charge VAT. Getting a VAT on this property seems like a pain in the B--- if it's do-able at all.
Stu Dudley
So that means that you're paying 20% or so more than the identical property next door if the "base" rate of the two are the same and the owner of the next door property is a small buisness person. I think I would find some property to rent that didn't charge VAT. Getting a VAT on this property seems like a pain in the B--- if it's do-able at all.
Stu Dudley
Dec 17th, 2007, 07:46 AM
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17.5% to be precise.
Forget about the VAT - just look for a good price and deal overall. What happens to the money once it gets to the owner essentially makes no difference to you. Some non-VAT owners charge a higher 'base' price than VAT owners just because they can and make even more profit!
Forget about the VAT - just look for a good price and deal overall. What happens to the money once it gets to the owner essentially makes no difference to you. Some non-VAT owners charge a higher 'base' price than VAT owners just because they can and make even more profit!
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