Individuals who bought new construction and built in the land for personal use should not pay VAT, being the obligation to pay tax only those who have done business with real estate operations, said the National Agency for Fiscal Administration (NAFA).

In the past two months, Fiscal started out on a national level where individuals who have achieved during 2006 - 2008 real estate operations. The main criteria is the nature of continuity, commercial real estate transactions carried out.

I consider cases where the exemption limit was exceeded 35,000 euros, the value of transactions and make more than five transactions a year.

In recent years there have been many real estate developers who do business on the individual to avoid paying VAT.

Under the Tax Code, any natural person who conducted acts of commerce whose value exceeds the sum of 35,000 euros must register for VAT. Transactions are taxable land in villages and new construction. NAFA controls selected for 7145 people, for a total of 85,442 real estate transactions, amounting to nearly 14.9 billion lei. Tax inspection was completed in 80 cases, being issued a decision imposing the VAT of 94.7 million lei. Also, were drawn up 30 criminal complaints for loss of 15 million lei. IRS seized the assets of PSD deputy Robert Negoita for non-payment of debts worth 28 million euros to the state budget. The agency is developing a survey on tax obligations of Members, representing the liabilities of non-VAT Negoita property transactions carried out between 2006 and 2008 was about 120 million lei. Of the total obligations to the budget, 76.8 million lei is VAT, which add penalties accumulated 43.7 million. Contacted by ZF last week said the deputy has received no notice from NAFA.

Source: Ziarul Financia