ᐅ Meeting with the construction company: What questions should we ask?
Created on: 16 Aug 2020 19:03
M
MP12345
Good evening, we have an appointment with the construction company tomorrow and, after reviewing the brochure as well as the building specifications / notarized contract, we still have some questions:
Thank you in advance for your valuable advice.
- When do we need to sign the construction contract – prices apply for building next year, but we would like to wait for the information sheet from the tax office!
- Is there a kindergarten behind the house? See the site plan / development plan?
- Internet connection setup? What type of fiber optic internet is available?
- When does the selection of finishes and fittings start?
- Which insurances do we need?
- When can we move in?
Thank you in advance for your valuable advice.
11ant schrieb:
You are still missing the guarantee for the (in my opinion, very likely) case that the tax authority concludes a linked transaction and then also demands VAT from you on the land price.
I see it differently: viewed individually, the payment plan may indicate a young company that hasn't yet built up a strong financial cushion. Together with "reference projects," this raises an additional caution for me; I have to consider that commercial insolvent companies often build up a good reputation before a crash. What do company databases and Gomopa say about the companies and their key personnel?The company has built almost the entire development.
Which guarantee should I ask for?
MP12345 schrieb:
The company built almost the entire housing development.Then, first of all, they shouldn’t be under such financial pressure, and secondly, there might already have been several similar cases within the jurisdiction of the same tax office that, if you’re lucky, have been resolved by now.MP12345 schrieb:
Which guarantee should I ask for?One that you won’t get.https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
11ant schrieb:
Firstly, it shouldn’t be so breathless, and secondly, there could already have been several similar cases within the jurisdiction of the same tax office, which, if you’re lucky, have been conclusively resolved.
One that you won’t get. Since when do you have to pay VAT on a plot of land in addition to the property transfer tax? We go to the notary and sign a contract for the land.
As far as I know, after about 4-8 weeks, a questionnaire from the tax office arrives, based on which the property transfer tax is calculated. We will not sign a construction contract in advance.
There have already been cases in the development where only the plots of land were purchased.
MP12345 schrieb:
Since when do you have to pay VAT on a plot of land in addition to the property transfer tax? Whenever the seller and the builder are effectively the same entity, no matter how split their legal structure may be.
MP12345 schrieb:
As far as I know, after about 4–8 weeks a questionnaire from the tax office arrives, based on which the property transfer tax is then assessed. We will not sign a construction contract in advance. To my knowledge, that is exactly the trick the tax office has been aware of for a long time.
MP12345 schrieb:
There have also been cases in the development where only the plots of land were purchased. Those cases are naturally not comparable in your situation. If you were hoping this would be the decisive argument against the tax office: to my knowledge, no—it is possible for the actual identity of the persons involved to trigger VAT on the land itself, even without a developer obligation.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
11ant schrieb:
Whenever the seller and the builder are effectively the same entity, no matter how divided their personalities may be.
To my knowledge, this is exactly the trick that tax authorities have known about for a long time.
In that case, they naturally do not count in your comparison. If you were hoping this would be the decisive argument against the tax authority: to my knowledge, no – even without a developer obligation, the effective identity of persons can also trigger value-added tax on the land itself. I personally checked the legal information for both companies, and my tax advisor reviewed the contracts as well.
I thought that, in the worst case, real estate transfer tax would apply on both, but no VAT on the land?
MP12345 schrieb:
I thought that in the worst case, land transfer tax applies to both, but no VAT applies to the land itself? I’m not a tax advisor, but I believe that if the land and house are considered as one unit, all applicable taxes apply to the entire package (?). If you’re lucky, I might be wrong about the VAT—but the core caution remains: what the tax authorities consider a single unit won’t be resolved by registering your fiancée in the landholding company and your brother-in-law in the construction company. If there is an identical beneficial owner behind both and control over management, and/or if it can be demonstrated from multiple similar cases that the split entities are effectively one, then the tax trap will close.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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