I wonder if anyone could help me out with the VAT situation in terms of rent.
I have a client who runs a garage renting the space that he works from. He is vat registered and the farmer providing the unit is also registered for VAT.
However, I had a feeling there were special circumstances in regards to rent and VAT but can find nothing on HMRC website.
I am right or just going crazy!
__________________
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for reply, however, Its still not clear to me
Am I right in thinking that this is an additional option and a VAT registered business would not necessarily have to charge VAT on rent unless they chose to by opting in.
__________________
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Am I right in thinking that this is an additional option and a VAT registered business would not necessarily have to charge VAT on rent unless they chose to by opting in.
That's basically it, ordinarily renting commercial property is exempt from Vat, unless the landlord specifically opt's into Vat. The landlord can then , normally, claim the vat charged in connection with making the supply.
__________________
Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
