VAT

[VAF]

Hi,


Since 1 January 2008 VAT 20 % is applicable.
Before 1 January 2008 VAT 14 % was applicable.

From GFM customer service ,the paiment date is considered.
But I have read from this forum that the contract signature date has to be
considered. Contract signed before 1 January 2008 14 % is applicable.

Where is the truth ?
Does somebody have official document about this question ?

Thanks for your help

[davmel]

VAT is a Sales tax and they must pay over to the government based on receipts date

[VAF]

Hi,

Thanks davmel for your answer.
This means paiment before 1/1/2008 are taxed 14 % and paiment
after 1/1/2008 are taxed 20 % .
The contract signature date does not matter.


Regards

[davmel]

VAF,
VAT is complex but that's the way it works everywhere else. Given the lack of any "engineers completion certificate" for the stage payments. I think it best to build the full 6% into your funding requirements. Despite earlier claims to the contrary, all the advice that i'm getting says there has been no exception for foreign buyers and we will be asked to trump up.
Davmel

[riaz]

I disagree.

We have to consider the VAT situation when we agreed to buy. When we agreed to buy the VAT was not 20%.
If you look at other projects they consider the VAT at the first agreement to purchase.

As it is most of us want a 20% discount as morocco property prices are down 20%. There is no way I will consider paying an extra 6%.

They are already delivering months after the agreed date and in Morocco for every month of delay they have to reduce the price by 1%. If they are not willing to make any reductions they will find that there are alot of people out there who will sue for their money back.

There is alot of property in that area unsold. There are alot of people who cannot continue with their purchases. As I said earlier the picture is not positive. Most people bought to flip- no one wants to buy. The hotels and shops that were supposed to bring this development to life have not been sold. If this is such a good investment, why haven't they been sold?

[VAF]

Hi riaz,

I had same reaction but after some search I found this :


"
Mesures spécifiques à la taxe sur la valeur ajoutée
Taxation au taux normal de 20% des opérations de crédit-bail et des opérations immobilières
Les modifications suivantes ont été introduits :
- l’application du taux de 20% au lieu de 10% aux opérations de crédit-bail (leasing);
- l’application du taux de 20% au lieu de 14% aux opérations de travaux immobiliers.
Pour l’application de ce taux, il convient de rappeler que conformément aux dispositions transitoire édictées à l’article 125 du C. G.I., les sommes perçues à compter du 1er janvier 2008 par les entreprises de leasing et les entreprises de travaux immobiliers, en paiement des travaux ou des services entièrement exécutés et facturés aux taux respectifs de 10 et de 14% avant cette date, sont soumises au régime fiscal applicable à la date d’exécution de ces opérations.
Les contribuable concernés par lesdites dispositions, et pour lesquels le fait générateur est constitué par l’encaissement, doivent adresser avant le 1er mars 2008 au service local des impôts dont ils relèvent, une liste nominative des clients débiteurs au 31 décembre 2007, en indiquant pour chacun d’eux, le montant des sommes dues au titre des affaires soumises au taux de la taxe sur la valeur ajoutée de 10 ou de 14% en vigueur au 31 décembre 2007.
La taxe due par les contribuables au titre des affaires visées ci-dessus sera acquittée au fur et à mesure de l’encaissement des sommes dues.
"
(source http://www.babfinance.net/baf-of-financ ... res-4.html)

It's in french , but in summary paiments made after 1 january 2008 are taxed 20 % even the original contract was signed 10 years ago.

This is about VAT, now discount for late delivery is another question or problem

[mcneilee]

to get any changes people need to get together take them on..

[riaz]

The VAT on new property is what the developer pays the government. I expect Addoha will pay the extra or come to some agreement. There is no mention on our contracts that the VAT may increase.

[VAF]

Hi Riaz,


VAT is a Sales tax paid by the final customer, the rate applicable is based on paiment date.
Paiment made before 1/1/2008 is taxed 14% and 20% after .

[mcneilee]

i still say it's worthwhile to see a renegotiate the contract. If you can get enough people to join in their is less to lose.

[Colin]

VAF,

Value added tax, it's a tax on the value added by the developer, it is a tax on the developer, it is standard practice to list it as a seperate component of price, however it is a tax on the developer, my contact is for a final amount including vat, therefore that's how much I pay.

I asked about this when I was on site last year, and was told very clearly, the amount my contact says I've to pay, is the amount I pay. I suspect you are merely trying to erode peoples confidence for some reason, I don't know your agenda, but I'm fairly sure that you know fine well that VAT is payable by the developer and that people who signed contacts prior to the change in rate are completely unaffected by the change in rate, again to make clear, I have asked GFM personally and they have confirmed this.

Colin.

[mcneilee]

in the july 08 press release they said that the cleint would have to make up the differece.Unless they have been trying to play a fast one

allthough it does say will be asked to pay the differece on completion time
so just say no you pay

[VAF]

Colin,

I'm not trying to erode peoples confidence.
I also invested in Acudia Smir so I hope you are true.

Do you have a written confirmation from GFM that people who signed contacts prior to the change in rate are completely unaffected by the change in rate.

[Colin]

VAF,

Again, as I say I asked the question in person. Why do you not believe this?

Colin

[mcneilee]