Buying New property, is stamp duty Calculated on price minus VAT ?

[olektrolek]

As above,
I was told that 1pc stamp duty should be calculated from selling price reduced by vat.

I asked my solicitor but he did not come back yet. Just making sure here?

What i mean is for example.
Price 180k
Reduced by 13.5% gives 155400

Stamp duty, 1pc of this is 1554.

This is nice 250eur bonus comparing to 1800 based on full price of 180k.

 

[Dermot]

No stamp duty on the Vat element

 

[bazermc]

Yes

Stamp Duty is on the net price before VAT

http://www.revenue.ie/en/tax/stamp-duty/property.html#content

 

[poolfanabc]

As above,
I was told that 1pc stamp duty should be calculated from selling price reduced by vat.

I asked my solicitor but he did not come back yet. Just making sure here?

What i mean is for example.
Price 180k
Reduced by 13.5% gives 155400

Stamp duty, 1pc of this is 1554.

This is nice 250eur bonus comparing to 1800 based on full price of 180k.

Slight correction I think on you calculation, just to bear in mind to ensure you budget for the correct tax due. (The way you calculated it was that the ex VAT price is 86.5% of the inc VAT price, that way you actually assume a 15.6% VAT so underestimating stamp duty).

When calculating the ex VAT price, you should divide the inc VAT price by 1.135 (as the inc VAT fee is 113.5% of the ex VAT price). So for 180k inc VAT, means 158.6k exVAT, stamp duty €1586.

 

[olektrolek]

thank you all for letting me know ;-)