KDV (VAT)

Updated 18 August 2008

On the 11th August 2008 we were again informed by the Lefkoşa Tax Office that KDV is payable on taking possession of the property. Their understanding of "taking possession" is when the buyer physically takes the keys or when you get mains electric or water in your own name.

They also stated that vendors are not charged a penalty for late payment of KDV on a particular property as the Tax Office is not aware when buyers take possession.

NOTE:  We would strongly recommend that you visit your local TRNC Revenue & Tax Office and advise them that you have paid the KDV.  Give them copies of the KDV invoice/Fatura and your cheque or bank payment receipt.  If you are unable to visit the Tax Office please send us the documents and we will pass them on for you.

By law KDV, if applicable,  is payable to the vendor when the buyer takes possession of the property. This is currently 5% of the contract price.  The vendor should issue an invoice clearly stating what the amount is for, the buyer should pay it by bank transfer quoting the invoice number on the transfer document and also request an official Fatura (invoice/receipt) from the vendor.  These documents may be needed as proof of payment at title transfer time.

KDV is payable by the buyer if:

KDV is not payable if: