Seller Reserves the Right to Add VAT?

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    Seller Reserves the Right to Add VAT?

    Hi

    I'm looking to buy another BTL via auction. I've just noticed in the special conditions on the legal pack, mention of VAT. This is the wording:

    VAT. The Seller reserves the right to make a VAT option in respect of the property at any time prior to completion and common auction conditions G.14.2 does not apply.

    This is the wording for Clause G.14.2

    Where the special conditions state that no VAT option has been made the seller confirms that none has been made by it or by any Company in the same VAT group nor will be prior to completion.




    Does this mean that in effect after I have exchanged contracts, that the price of the property can increase by 20%? Why would the seller suddenly decide to charge VAT?


    Many thanks.

    #2
    You can always choose another property in another location. Its not the only BTL property on the market. You just don't exchange contracts if the total price including any VAT payable is not agreed by you.

    This website may give you a better understanding of the situation when the "Seller is a company registered for VAT".

    http://www.out-law.com/en/topics/tax...-transactions/

    Comment


      #3
      Thanks. Have decided to look for another property.

      Comment

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