VAT on commercial rent

[Slash]

Hi,

Our company has some vacant warehouse and office space. We own the building. We are proposing to let that space to another company.

Can someone tell me if we need to charge VAT on the rent, and at what rate?

Thank you.

 

[dublin67]

This is a tricky question that depends on a lot of factors. I'd suggest that you either talk to an accountant or a tax consultant. I know that a lot of accountants refer questions on vat on property to tax specialists. To say this issue is complicated may be an understatement and it is a high risk area as the cost of getting it wrong can be so high.

 

[Joe_90]

It’s very straightforward.

All leases are exempt except when you opt to tax them!!!

Talk to your accountant, usually you opt to tax and the tenant recovers the VAT but there are exceptions.