When you buy one of the Nadolnik Compact Apartments development’s smart apartments you can benefit from regular income from renting out and decreased income tax as per deducted renting costs, e.g. amortisation, mortgage interest rates, insurance, repair works, etc. But you can also claim a full refund of the VAT you paid.
If a buyer is a person conducting business activity or a limited company then general VAT and income tax rules apply.
Natural persons who do not conduct business activities who purchase one of our smart apartments can also claim a full VAT refund that was applied to the purchase value.
This is pursuant to Article 86 paragraph 1 of the Act on the goods and services tax of 11 March 2004 which allows individuals to deduct input tax from the amount of payable tax when goods or services are used to conduct taxable business activity.
In order to claim a VAT refund the owner of the apartment shall rent it out and issue at least one VAT invoice.
How to CLAIM A VAT REFUND:
- register as a VAT taxable person at the tax office local to where you will receive your income (VAT-R form). Please note: you must be registered before you pay a deposit on the apartment,
- keep a file of all purchases with VAT invoices received from Nadolnik Compact Apartments,
- submit your VAT returns to the tax office monthly or quarterly (as per the frequency of your returns),
- VAT refund will be processed within 180 days. You may request in writing a VAT refund within 60 days which is subject to a payment of a refundable deposit equal to the amount of requested tax refund (pursuant to Article 87 paragraph 5a of the Act on the goods and services tax of 11 March 2004).
A VAT refund on the purchase of our smart apartment makes this investment a clearly more beneficial opportunity than buying a regular property.