- The price increase of an apartment building management contract due to the introduction or increase of VAT must be approved at a general meeting of owners (OSS).
- The Constitutional Court of Russia ruled that the contractor cannot unilaterally raise the contract price by the amount of the new VAT if the buyer cannot claim a VAT deduction.
- If the parties cannot agree, the seller may increase the contract price in court, but only by half the amount of the new tax, and only if the buyer is not an individual.
- For most housing owners, who are individuals, any price increase due to VAT changes must be agreed upon at the OSS and cannot be imposed unilaterally or through court.
- Raising the management fee at the OSS is difficult due to organizational challenges and the need to convince a majority of owners to pay more.
Source: garant.ru
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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