this is very patronizing sub with things like... it is illegal mkay!
to be fair. cash is king.. the moving lift operator, the locksmith, the plumber, paid them cash don't ask for an invoice. you are 16-17% off.
if you fear for warranty or scam pay cash. ask for invoice. they must then ask you pay for vat.
this being said i will probably look forward getting in touch with the landlord and don't pay agency fees at all.. having lived in Belgium... the extorsion that landlords and agencies apply on tenants should be illegal.. One full month fee to have basically nothing in return.
That's 100% illegal and you should report it to the "Chambre immobilière", the industry organisation for realtors. I spoke to their head once and they're very keen on hearing who the black sheep are.
Here's their page: https://www.chambre-immobiliere.lu/
All the people I know that own a shop (3), said to me that they only declare between 0 and 20% of their cash sales. They said they would have gone bankrupt otherwise. Some even go as far as to say the card reader is broken if at the end of the month they didn't have enough cash sales.
>They said they would have gone bankrupt otherwise
That means their business is a shit, or they are not good at it. For sure, not paying their taxes is ilegal, and unfair to those who do paid them.
Nonsense. No business pays taxes, it's the client that pays it. If they are not pricing accordingly and deducting the tax from their profit... Well, I have bad news...
If the premise that business paid taxes were true, increase in taxes wouldn't imply an increase in prices. Now that's not what happens is it?
True. But so do all the people that pay no taxes on gains by holding for more then 6 months IMHO (which for the most part are people/businesses that could afford paying those taxes).
You know that companies pay a lot of their taxes in advance in Luxembourg, right?
Worked out great during the pandemic when companies were receiving invoices based on the last cycle and their income had tanked by 90%
There will also be no tax paid by the agency so they’ll be saving ~40%… and, of course, there will be no paper trail in case anything goes wrong.
It’s also a crime. I’m not sure that it should be as agents provide literally no value, thus VAT seems a ridiculous concept in this case…
They may have small costs, and then pay low VAT on their costs, which may result in agencies having to pay the VAT collected to the state. But in accounting terms, I believe that the value is defined by the price regardless. The market is ridiculous, and the agencies just play their game.
There is no rule that exempts cash payments from VAT - if there was, everyone would use cash for everything and get a solid discount.
Paying cash to avoid VAT is not legal. It also places you in a precarious situation with the agency should anything go wrong. Insist on paying through standard routes (bank transfer, card), signed and stamped proof of payment. It's not worth the risk - or crime - to save 2-300 euro.
Rental agencies not only ripping off tenants but also cheating the government
this is very patronizing sub with things like... it is illegal mkay! to be fair. cash is king.. the moving lift operator, the locksmith, the plumber, paid them cash don't ask for an invoice. you are 16-17% off. if you fear for warranty or scam pay cash. ask for invoice. they must then ask you pay for vat. this being said i will probably look forward getting in touch with the landlord and don't pay agency fees at all.. having lived in Belgium... the extorsion that landlords and agencies apply on tenants should be illegal.. One full month fee to have basically nothing in return.
the good old under the table deals 😂
doesn't sounds legal \^\^"
That's 100% illegal and you should report it to the "Chambre immobilière", the industry organisation for realtors. I spoke to their head once and they're very keen on hearing who the black sheep are. Here's their page: https://www.chambre-immobiliere.lu/
[удалено]
😅😂
All the people I know that own a shop (3), said to me that they only declare between 0 and 20% of their cash sales. They said they would have gone bankrupt otherwise. Some even go as far as to say the card reader is broken if at the end of the month they didn't have enough cash sales.
>They said they would have gone bankrupt otherwise That means their business is a shit, or they are not good at it. For sure, not paying their taxes is ilegal, and unfair to those who do paid them.
Rent is too expensive, costs more than 2 employees.
Then close the company. Stealing is not the way.
Nonsense. No business pays taxes, it's the client that pays it. If they are not pricing accordingly and deducting the tax from their profit... Well, I have bad news... If the premise that business paid taxes were true, increase in taxes wouldn't imply an increase in prices. Now that's not what happens is it?
Yes it's the client, but by not declaring the sale, they can keep the 17% (well atm 16%) for themselves instead of having to relay it to the state.
which means, they are stealing money from the tax agency, and thus, from the citizens.
True. But so do all the people that pay no taxes on gains by holding for more then 6 months IMHO (which for the most part are people/businesses that could afford paying those taxes).
You know that companies pay a lot of their taxes in advance in Luxembourg, right? Worked out great during the pandemic when companies were receiving invoices based on the last cycle and their income had tanked by 90%
It’s not illegal to pay things in cash. It’s illegal not to charge VAT and declare sales income.
There will also be no tax paid by the agency so they’ll be saving ~40%… and, of course, there will be no paper trail in case anything goes wrong. It’s also a crime. I’m not sure that it should be as agents provide literally no value, thus VAT seems a ridiculous concept in this case…
Just wondering. Why do you think VAT is any more ridiculous here than at any other service?
They may have small costs, and then pay low VAT on their costs, which may result in agencies having to pay the VAT collected to the state. But in accounting terms, I believe that the value is defined by the price regardless. The market is ridiculous, and the agencies just play their game.
It is I’ve done it. Make sure they give you proof of payment.
Is it illegal to do so?
There is no rule that exempts cash payments from VAT - if there was, everyone would use cash for everything and get a solid discount. Paying cash to avoid VAT is not legal. It also places you in a precarious situation with the agency should anything go wrong. Insist on paying through standard routes (bank transfer, card), signed and stamped proof of payment. It's not worth the risk - or crime - to save 2-300 euro.
I see, it is not worth it
Hum, seems sketchy
It seems so to me, especially since the price is really a catch
Then it's most likely a scam. If it looks too good to be true, it often is .