The merchant of goods deals with the purchase and resale of real estate and has the main objective of making a profit. Reduced notary fees are one of the main advantages of merchant status when performing acquisition transactions. Despite this, notary fees seem to be overestimated for traders, who still hope to receive discounts from the notary by “nibbling” on his profit. Focus.
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VAT on transactions
The merchant buys on his behalf and resells his real estate to individuals or real estate companies. Its Transactions are subject to VAT, including transfer duties with the property advertising tax, which revolves around 0.715%. In return it has the obligation to resell within a maximum period of five years. If this is not the case, the merchant may face penalties he will have to pay and the loss of some of his benefits. The taxable profit remains determined by the results of transactions of any kind carried out by the merchant of goods.
Reduction of notary fees
Notaries play an indispensable role in validating the transactions of merchants of goods and also ensure transparency and security of operations. In addition to disbursement fees and taxes, notary fees may seem high for the merchant, but they can still save by paying less. With each change of ownership, he must pay notary fees. The latter are reduced, if the merchant of goods carries out a real estate transaction with a professional. In the context of resale of a property, he has the option to include agency fees in the sale price. Negotiation is possible with the notary to reduce the amount of his fees, especially if the merchant of property has other real estate projects and has good relations with the latter. It is also a good idea to put notarial expenses on the funding budget to avoid the cumbersome payment.
Calculation of notary fees
Notary fees remain complex for some non-experienced merchants of goods. The taxes that the notary must remit to the state, the region, the department, the municipality,…, not counting the notary’s fees. The applicable rate varies depending on the percentage of sales. If the price is large, the percentage of taxation will remain low. The different fixed fees do not change. Notary fees include the notary’s fee, the settlement of formalities and miscellaneous fees, the property advertising tax, which revolves around 0.715% of the purchase price excluding tax. Notary fees are 2 or 3% of the price including VAT, while old housing has a rate of 7 to 8% for old housing. Transfer duties increase from 5.09% to 0.715% provided that the property is not kept for a period of 4 years.
To be read in addition : Calculation of VAT on merchant margin of goods
An online simulator to help you
As you have understood in our article, it is not always easy to juggle these expenses. They can quickly make a purchase very complex or even impossible, hence the interest of informing you upstream notably via a site that offers you a calculation of notary fees. It is very easy to take in hand and you are not forced to be a professional to successfully use it.
- You must choose the type of property since it can be new or old, the calculation will then be influenced by this data.
- You can opt for real estate or building land for the construction of a house or a premises.
- You also enter the amount of this transaction without taking into account the fees.
- You get the amount immediately, it helps to know if the requested loan will be sufficient or if you need to get an extension cord.
It is important to clarify that the larger the amount of this investment, and the more the notary fees will tend to grow. You should not neglect them since your transaction can quickly be canceled due to thisexpense.