Paying back VAT on a property

[Paul]

Hello

I would like to find out somemore info regarding VAT. We had a property built in 2006 and established a gite from the property and claimed back the VAT, we would like to close the buisness down but have to find a large amount of VAT to pay back. Basically keeping the buisness running is occuring huge costs and we would prefer to keep the property as a holiday home untill we are able to find a buyer. I have been told from our accountant that the VAT has to be paid back with in one month of closing the buisness in full.

Problem is we dont have this amount just yet but will do when we sell the property. Is there a way we can pay this VAT back in stages or in the future once the property has been sold, as mentioned keeping the buisness is costing to much and if we could get rid of any buisness costs we could keep the property and there costs till it sells.

Look forward to any advice

Paul

[richard51]

Think that you need to discuss with your accountant rather than here.

[richard51]

Sorry to be negative. We gave up renting out our property quite a while back as it was more hassle than it was worth.

My honest advice would be to cut your losses as much as possible. If profits are there then well done.

[minnie]

All you can do is ask your accountant to approach the impots with either a payment schedule or a request to wait until you've been able to raise a loan/mortgage to cover this. I very much doubt that they'll wait until you sell the property unless it's in the near future. The main thing is not to ignore it as, if they have your bank details, they could freeze your account.

[EuroTrash]

The impots will probably agree to a payment schedule but they will charge interest as on a loan, and if it is a very large amount the payments risk being high, they're unlikely to allow a very long timescale. Do you live in France? Probably more chance of the impots agreeing to a payment schedule if you do.

If you don't want to keep paying out to keep the business open, and the only way you foresee ever being able to pay off the tva in order to close it is by selling or taking out a loan, either way it is looking like turning into a very expensive holiday home. The best option would seem to be to sell as fast as possible even if that means letting it go at a knock down price, at least that way you will avoid the interest charges. But your accountant is best placed to advise, he knows all the figures involved, and that is what you are paying him for.