In total, over €45 million will end up in Tax Department from those who paid 5% instead of 19% VAT on housing
They may have been spared for a while, but theTax Department is determined to recover the amounts related to the reduced VAT 5% in the 1st residenceand where some – while they are not entitled – benefited.
From the campaign launched almost two years ago by the Tax Department, approximately €40 million have reached the state's coffers, while another approximately €4 million will be recovered from the Department's latest audits.
In particular, according to the data, the Tax Department in July carried out 1000 spot checks,mainly in Famagusta Province and identified at least 50 cases that violated the legislationand sothe owners will have to return the difference arising in VATwhich amounts to approximately €4 million.
It is recalled that several owners had declared their houses as A' residence in order to benefit from reduced VAT rate of 5%. However, along the way it was found that these houses are either used as self-occupied holiday homes or rented out to tourists and therefore are not entitled to the reduced rate, but would normally have to pay 19% VAT.
< p>Now after the audits, those who are found to have benefited when they should not have been obliged to pay the resulting difference of 14%.
As conveyed by the Tax Department, the checks will continue but will also be repeated in residences where no tenants have been identified, so that all those owners who illegally benefited from the reduced rate will return the difference.
At the same time the Tax Department notes that owners can voluntarily go to the Tax Department and settle their debts, which can also be paid through monthly installments.
It should be noted that so far they have more than 4,000 audits have been carried out and more than 500 buyers have been identified from whom the lost VAT will be recovered, while more than 500 have voluntarily informed the Tax Department and returned the amount.
source: Brief/Charalambos Zakos
