Superbar365
Registered User
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Hi, finding very hard to get an answer on this (without troubling my accountant). If a business buys a site with planning permission from an individual who happens to be selling his side garden for example for €200k, the business then builds the house for €150k and then sells the house for €500k hypothetically.
Does the €500k sale price include Vat of 13.5%? Or is Vat just charged on the sale price less the site price which would be vat on €300k? If the vat is been charged at the €500k level should the business been able to claim vat back on €200k site sale price, if not then surely there's something wrong there?
I know its a bit confusing but to put it another way if the latter is the outcome, if the business bought the site for €200k and decided to do nothing with it and sold it again in 3 months for €200k then surely there would be no vat on that sale if no vat was claimable from the purchase price.
Does the €500k sale price include Vat of 13.5%? Or is Vat just charged on the sale price less the site price which would be vat on €300k? If the vat is been charged at the €500k level should the business been able to claim vat back on €200k site sale price, if not then surely there's something wrong there?
I know its a bit confusing but to put it another way if the latter is the outcome, if the business bought the site for €200k and decided to do nothing with it and sold it again in 3 months for €200k then surely there would be no vat on that sale if no vat was claimable from the purchase price.