VAT back on investment property to let

Thanks Katiealice. I understand all the implications and my view is the same as yours. Its just that when I expressed them on AAM, there were a number of posts that disagreed with me. I began to question my own understanding.

With regard to de-registering, it was a hypothetical question (no intention of doing so). Again some people said that it was impossible to de-register, if , for some reason, you needed to sell the property quickly. Glad you were able to clarify it for me.

On-line, I am able to see what VAT rebate I received and what I have paid to date. Call it a balance sheet.
 
Hi,
I'm buying an investment property (property 1) and I'm thinking about becoming VAT registered. I understand I will pay the VAT back over the years from my rent. I also have another residential property (property 2) that I'm renting out currently. Again I understand that this rent will also be subject to vat when/if I become registered. My questions are

1- Once I have the lump sum paid back Can I then de-register and property 1 drops out of the VAT net? Can I sell it without being charged VAT.

2- I plan to sell property 2 next year. Would the sale of this property be subject to VAT if I register now for VAT. Its a secondhand house and I never claimed VAT back on it.

3- If I purchase a property to live in while registered does that have implications.

rgds
 
very topical thread this in relation to vat on property. i have one simple question/point to make. if you were a business person not registered for vat because you came under the treshold for registration (€25,500 for supply of service/€51,000 for suply of goods) and you registered for vat to buy a property, then it would make sense that you would have to charge vat on your trading income? any comments?
 
You must register for VAT before you buy a property. You then waive your right to VAT exemption on rental income. This means that any property you have is liable for VAT on rent/sale. It is possible to pay back lump sum and deregister. Your PPR is not affected by this.

Viztopia, AFAIK, (nearly positive) any other business, i.e. other than rental is not affected.



Edit: You cannot de-register one property at a time...it's all or nothing.
 
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