English
FrançaisHello,
A few years ago we purchased a leaseback property
in Nice. At the time we were "signed up" with an
accountant who now takes care of completing the
tax returns. During the first couple of years, we were to too busy concentrating
on the tax returns to notice anything else. I have now checked through things
and have realised that there are two sets of accounts, one for the French income
tax return and a second for VAT (CA12).
It is this second item that
I do not understand. Basically we have to pay VAT (at 5.5% for 2005) on our rental income. Why? I
have tried asking the accountant, but he says that its because "of your
activity of hirer non professional of a furnished rent.". None of this was
mentioned when we purchased the apartment and I cannot find any solid references
to this type tax in respect of leaseback properties.
Can anyone help? Is this
just a normal part of the Leaseback scheme and that we were not paying enough
attention at the time of purchase? I've seen the previous thread on "taxe professionnelle", is this the same thing as I've described above?
Thanks Mark
Thank you for the reply
Seamus.
So maybe the
accountant assumes (!) that our rental income from the leaseback management
company includes VAT and is thus "giving
it back". But this then means we're not
receiving our agreed return from the management company. I can't see how the income paid to us can include VAT
- if it did the percentage return would not work out correctly.
As to whether or not we're paying "taxe professionnelle", I don't
think so, I've not seen that phrase in any correspondence, but I'll try talking to the accountant, see if I can
get a straight answer.
Thanks again,
Mark
actually receive your rent with the VAT. Who is your management company?
For what its worth, the company is called "SARL JPR Promotions COTE D'AZUR".
Thanks,
Mark