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Strange phone call from estate agent about having a VAT number.

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  • 13-05-2016 11:00am
    #1
    kingdomfan
    Registered Users Posts: 28 ✭


    Hi everyone, I am hoping somebody might be able to shed some light on a call I received form an estate agent.

    I have submitted an offer on a house which is in the late stage of construction (ready for second fix plumbing, electric and carpentry). The previous builder/ owner had gone bust around 2008 and house is now with the bank.

    Last Friday I submitted an official offer with the agent of 120k, I am a cash buyer and had to provide proof of funds, the proof I provided reached this figure exactly. (last bidder 117)

    Yesterday I received a call from the agent wondering if I had a VAT number (I don’t) as the previous builder might have claimed back the VAT on the build, and the vendor might want this VAT paid on top of the asking price.

    I contacted my solicitor at this point as I felt surly any VAT would be the vendors’ obligation and he confirmed this, that my offer was the price I pay regardless of VAT.

    So I returned to the agent with this information, only to be told that because the bidder of 117k had a VAT number his offer would be the offer of choice as he could claim back any VAT that was place on top of his offer.

    I have never heard of this VAT on top of offer thing or the previous builders VAT claim being sought off the new buyer by the vendor. Has anyone heard of this before?


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    #2
    CIARAN_BOYLE
    Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    kingdomfan wrote: »
    I have never heard of this VAT on top of offer thing or the previous builders VAT claim being sought off the new buyer by the vendor. Has anyone heard of this before?

    Very complex professional area, I've the sort of bare understanding that I've a general idea but usually need to look things up.

    http://www.revenue.ie/en/tax/vat/leaflets/property-guide/

    Basically if a buyer claims a new building as a vat input then he must sell it as a vat output.


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    #3
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    CIARAN_BOYLE wrote: »
    Very complex professional area...
    Not that complex, really, but the way the EA put it might be confusing.

    Business-to-business transactions are priced before VAT is added. If the other bidder was a builder seeking to take the project over and finish it, then his bid would have been €117 ex VAT; your was €120K to include VAT.


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