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  #1  
Old 01-09-2006, 08:47 PM
volda volda is offline
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Location: Mullingar
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Default VAT on rent?

Is it payable? My husband is paying 500 a week rent to landlord(restaurant)or so we thought, but has now been told it is actually 605.
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  #2  
Old 01-09-2006, 09:15 PM
Ravima Ravima is offline
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Default Re: VAT on rent?

lease shoudl clarify this, was the payment exclusive or inclusive of VAT? if you are VAT rgistered, can you not reclaim anyway?
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Old 01-09-2006, 09:49 PM
Solutions Solutions is offline
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Default Re: VAT on rent?

The contract should state this.
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  #4  
Old 02-09-2006, 04:51 PM
volda volda is offline
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Default Re: VAT on rent?

Lease says 500 per week - it does not stipulate inclusive or exclusive of VAT. We were made to understand that it was the full amount payable.
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  #5  
Old 02-09-2006, 05:08 PM
liteweight liteweight is offline
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Default Re: VAT on rent?

The lease should have stated 500 + VAT. If it does not, I'd assume the 500 to be VAT inclusive. Are you sure the landlord is registered for VAT. The other big issue I suppose is...are you registered because if so you can reclaim it.
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  #6  
Old 03-09-2006, 10:16 PM
volda volda is offline
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Default Re: VAT on rent?

Lease says 500. Yes we are vat registered, but it is a pain to have to pay it and then get it back!
What is the legal position if the conrtact does not state one way or another whether vat is inclusive or not?
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  #7  
Old 04-09-2006, 03:01 PM
Glenbhoy Glenbhoy is offline
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Default Re: VAT on rent?

Commercial rents in my (allbeit limited) experience are normally quoted net as the VAT will normally be reclaimable by the the tenant and is an irrelevant cost. It's not that big a deal to reclaim, although I agree that a legal document like a lease should specify details like this.
If you're happy with the premises there's no point in getting on bad terms with the landlord as there may be break clauses etc inserted in the lease.
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  #8  
Old 20-01-2007, 11:49 PM
Chas Chas is offline
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Default Re: VAT on rent?

My commercial lease states 500 inc of VAT - but doesn't state a VAT rate. I've checked on Revenue.ie and done some google searches but cannot find what VAT rate is applicable to rent. Does anybody know?
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  #9  
Old 20-01-2007, 11:57 PM
mirmick mirmick is offline
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Default Re: VAT on rent?

21%
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  #10  
Old 21-01-2007, 12:24 AM
Chas Chas is offline
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Default Re: VAT on rent?

Luvly Jubly - another VAT expense to offset against my VAT.

Funny the lease doesn't specifically state it but thats probably in case the rate changes eh?
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  #11  
Old 23-01-2007, 08:34 PM
8till8 8till8 is offline
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Default Re: VAT on rent?

Volda,
You should get both your solicitor and accountant to check whether VAT applies. Many leases are not within the VAT net and much of it has to do with the company structure that constructed the building. Generally speaking its a complex area and the absence of specifics in your lease agreeement, means it should be looked into quite closely.
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