Purchase - sale of property from a company

Purchase - sale of property from a company

Question:
Hello!
I have the following case study: a company that is not registered for VAT buys a house for 110,000 euros from an individual. The company has no activity. After six months, he wants to sell the house for 150,000 euros.
1. Will it have to register for VAT?
2. Will I have to pay a fee to the state?
3. Is it possible to pay 120,000 euros in a bank, 30,000 euros in a personal account?
Thanks in advance!

Answer:
Hello,
VAT registration is mandatory after passing the registration threshold (which is currently BGN 100,000). I.e. upon sale, an obligation to register for VAT arises. Please note that the deadline for registration will be 7 days after reaching the turnover. This is important because generally (in response to your second question) no VAT is due on the sale made. However, if the deadline for registration is missed, to the penalty that will be imposed by the National Revenue Agency, a penalty in the amount of VAT will be added on the supplies made from the date of reaching the turnover to the date of VAT registration (including the amount of the sale of the property). If you meet the deadline, the remaining taxes you will owe are:
- tax on realized profit
- local taxes and fees for the time the property is in the name of the company
- depending on how you agree with the seller, you can cover part or all of the notary and municipal fees related to the transfer of the property. They are different for each municipality and depend both on the respective tax rates of the municipality and on the type of property, its tax assessment and the value of the sale transaction.
Regarding your third question - the only reason to receive part of the amount on an individual's account is if the company owes that amount to the individual in connection with some other transaction (eg the individual provided a loan to the company).
We hope we have been helpful!
Greetings!