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ᐅ Meeting with the construction company: What questions should we ask?

Created on: 16 Aug 2020 19:03
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MP12345
Original post
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:

  • 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?
Are there any other questions we should definitely ask?

Thank you in advance for your valuable advice.
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MP1234517 Aug 2020 15:32
#31
11ant schrieb:

I’m not a tax advisor, but I think that if the plot of land and the house are considered as one unit, all applicable taxes apply to the entire entity (?). If you’re lucky, I might be wrong about the VAT – but essentially, the warning stands: what the tax authorities consider to be a single unit is not changed by registering your fiancée as a shareholder in the land company and your brother-in-law in the construction company. If there is a common beneficial owner controlling management and/or if from multiple similar cases it can be concluded that the divided entities are in fact one, then the tax trap will close.

The following is stated in the link:

Value Added Tax: The sale of the land is exempt from VAT (§ 4 No. 9a UStG). However, the services of the architect and the contractors carrying out the construction work are subject to VAT according to the general rules.
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nordanney17 Aug 2020 16:25
#32
11ant schrieb:

If you're lucky, I'm wrong about the VAT
You are. A land or house purchase (I also include the general contractor contract and developer contract here) is always VAT exempt, meaning no VAT is shown to the buyer.
11ant17 Aug 2020 16:41
#33
nordanney schrieb:

You do. Buying a plot of land/house (I include general contractor and developer contracts) always involves VAT complications, meaning there is no VAT explicitly stated for the buyer.

You mean in the sense of "unfavorable for a buyer who can claim input tax because it’s included but cannot be reclaimed"? – that wouldn’t matter for the typical private home builder.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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nordanney17 Aug 2020 19:06
#34
11ant schrieb:

You mean in the sense of "unfavorable for a buyer eligible for a tax deduction because it's included but not itemized"? – that wouldn’t matter for a typical private homebuilder.
Exactly. It doesn’t matter for the end consumer. However, it does matter for the developer, since they pass on their purchase prices increased by VAT to the final buyer (who, however, does not actually see the VAT).
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Octrineddy18 Aug 2020 08:07
#35
MP12345 schrieb:

I personally checked the legal information of both companies, and my tax advisor also reviewed the contracts.

I thought that, in the worst case, property transfer tax would apply to both, but no VAT on the land?
That is correct, no sales/VAT, but property transfer tax applies to everything.