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Old 21st May 2014, 15:50   #1 (permalink)
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Is VAT relevant to a self run Condominium?

I would appreciate advice from other owners that run their own sites under Turkish Condominium Law.

If a management company is employed then I assume that they need to pay VAT on the maintenance fees collected as they would be a registered company.

My question is this .... Am I right to assume that if the owners run their own site (without the involvement of a management company) then there is no VAT payable on the contributions made toward communal expenses, and that the whole operation is outside of the VAT regime?

Any advice would be gratefully received.
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Old 21st May 2014, 16:42   #2 (permalink)
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Re: Is VAT relevant to a self run Condominium?

If you run the site yourselves fees collected would be for expenses to cover maintenance and repairs there would not be any VAT/tax on this as no one would be making any profit.
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Old 21st May 2014, 17:08   #3 (permalink)
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Re: Is VAT relevant to a self run Condominium?

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If you run the site yourselves fees collected would be for expenses to cover maintenance and repairs there would not be any VAT/tax on this as no one would be making any profit.
Hello Tosmur. On a different but related topic, if the site is run by a management company, who also are the developer and who also provide the security and site manaintenance services and where no owners are involved in the management process, are there any particular pitfalls that owners should be aware of . The reference to VAT by David (thread starter) suddenly put doubts into my head as to whether owners on our site may have responsibilities that we may not be aware of eg ensuring proper payment of taxes like VAT/SSK/Income Tax are being paid in accordance with the law. At present we just appear to live and operate in the hope that the management/maintenance company are doing their job in a way that leaves us clear of any future liabilities.
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Old 21st May 2014, 21:18   #4 (permalink)
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Re: Is VAT relevant to a self run Condominium?

My guess is that you cannot be charged any taxes if you are not making any profit, you should not be making any profits as fees are for maintenance and communal expenses. I am not an expert or anything but what I can't see what tax you would be liable for. Any taxes would be added to utility bills etc so that would be on the invoices.

The maintenance company are liable to cover their employees, they should provide you with detailed legally audited accounts that have been stamped by a notary.
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Old 21st May 2014, 21:29   #5 (permalink)
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Re: Is VAT relevant to a self run Condominium?

Vat is not normally a tax on profit, it's a tax on goods and services.

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Old 21st May 2014, 21:30   #6 (permalink)
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Re: Is VAT relevant to a self run Condominium?

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Vat is not normally a tax on profit, it's a tax on goods and services.

Martin
But added to the bill so not payable seperately, which is why I put /tax

It is always a good idea to check that maintenance companies pay the insurance for their employees as there have been situations where they have claimed it from owners on a complex. Personally I would be wary.

Last edited by tosmur; 21st May 2014 at 21:35..
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Old 21st May 2014, 21:35   #7 (permalink)
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Re: Is VAT relevant to a self run Condominium?

If I provide a service to you that costs me £100, but I only charge £50 plus vat making it £60, I have made a loss but the vat is still charged, hence my statement, it maybe as a sitesi you can reclaim any vat for goods and services, you would need to ask the tax office or an accountant

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Old 21st May 2014, 21:38   #8 (permalink)
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Re: Is VAT relevant to a self run Condominium?

I don't know how it works in Turkey but in the UK you would have to be a business and earn a certain amount to be able to get VAT registered if you are not VAT registered you cannot reclaim the VAT.
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Old 21st May 2014, 21:43   #9 (permalink)
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Re: Is VAT relevant to a self run Condominium?

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I don't know how it works in Turkey but in the UK you would have to be a business and earn a certain amount to be able to get VAT registered if you are not VAT registered you cannot reclaim the VAT.
That isn't correct, you can register for vat even under the compulsory vat registration figure. It can be profitable for a business that offers a service with no material costs

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Old 21st May 2014, 21:48   #10 (permalink)
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Re: Is VAT relevant to a self run Condominium?

The question was not can they reclaim VAT it was do they have to pay it. If I misunderstood DavidNicholson & sybil plessey questions I apologise.

VAT Law in the UK is extremely complex I cannot imagine how complex it would be in Turkey, my guess is they don't want to go down that road and if they do they would need advice from someone qualified in Turkey. Unless of course you want to advise them on this Martin.
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