Is income on property inclusive or exclusive of VAT?

Z

z106

Guest
If you are renting out an investment property for which VAT is payable on the monthly rent due to the VAT being claimed back on purchase,is your income on that property considered by the tax man to be the amount inclusive or exclusive of VAT?
 
Income is the amount after VAT. (and expenses are also included at the VAT exclusive cost).
 
We might be confusing ourselves with the terminology used - apologies.

Income and expenditure for this VAT registered individual should be VAT exclusive when calculating taxable profits.


('Amount after VAT' = income after paying Sales VAT)
 
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