The Book-keepers Forum (BKF)

Post Info TOPIC: VAT on rent


Veteran Member

Status: Offline
Posts: 47
Date:
VAT on rent


Hi I hope someone can help me here, I am helping an engineering  firm whilst they employ a regular bookkeeper .I have come across an issue regarding VAT. The company are invoiced for rent on two workshops from, I assume, a rental agency.  The invoice received does not charge vat and there isn't a vat registration on the invoice. The company I am working for also has another company who rent the second unit.  The engineering company then invoice the second company for the other unit, charging them the same amount that they were invoiced for but plus VAT....is this right?  Any help would be appreciated.



__________________


Expert

Status: Offline
Posts: 1707
Date:

It is up to the person renting out the property whether they charge VAT or not. If they opt not to charge VAT they can't reclaim VAT on anything relating to the property.

__________________

Never buy black socks from a normal shop. They shaft you every time.

http://www.smbps.co.uk/



Veteran Member

Status: Offline
Posts: 47
Date:

Hi Peasie...thanks for taking the time to answer the question and so to clarify: the company who is subletting the unit can definitely charge vat if they want to?

__________________


Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:

subletting...

You are stating that they are looking to opt to tax a building that they do not own.

If they opt to tax they wil have six months to change their minds and then they cannot change the option for another twenty years.

The letting agreement must state that there is an option to tax or the owners must inform the tennant in writing of the intention to tax which gives them time to terminate the agreement before such tax is applied.

Tennants who are not VAT registered or provide only exempt supplies will be disadvantaged by a landlords opting to tax. You may also find the property difficult to subsequently let if other similar properties in the area are not taxed.

I stand to be corrected but my understanding is that a tennant cannot opt to tax a sub tennant if the owners of the property are not taxing them.

Considering the above the decision to tax should not be taken lightly.

Shaun.

__________________

Shaun

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.



Veteran Member

Status: Offline
Posts: 47
Date:

Hi Seamus
thanks for this. I will speak to their accountant and express my concerns (it was the accountant that told them to do this) re charging vat on the sublet unit.


__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About