VAT on rent?

A

Abigale

Guest
2 questions pls
I have 2 children in college, am paying rent for their accommodation, am I entitled to offset this against my tax??
I have someone interested in renting a warehouse from me, they have been told by their accountant that they should pay me VAT. I am not registered for vat, and do not wish to be. Do I have to register? Can I just accept this rent without vat? I will be paying tax on this in any case. Advise pls
 
Abigale said:
2 questions pls
I have 2 children in college, am paying rent for their accommodation, am I entitled to offset this against my tax??
Click to expand...

You may be entitled to claim the rental tax credit worth €330 per year.
Have a read of the info on the revenue website regarding this credit.
 
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This is not straight forward. What the have been told is not entirely true. It is your personal tax circumstances and the lenght of the lease that will dictate whether or not VAT should be charged.

How long is the lease for?

A short lease of less than 10 years is exempt from VAT this means the landlord does not charge VAT on the rents and does not have to register for VAT. However a landlord may waive this right and the lease will become taxable at 21%. This election will make all the short term leases that the landlord has taxable
 
Ignore previous posts.

Is the warehouse in the VAT net - you will only gain assurance by seekign proper advice here with a tax-qualified accountant.
 
aetius said:
Ignore previous posts.

Is the warehouse in the VAT net - you will only gain assurance by seekign proper advice here with a tax-qualified accountant.
Click to expand...

I am qualified accountant (ACCA) and tax consultant (AITI) :mad:
 
I think aetius' point (with which I agree, btw) is that the specifics of the case will determine the VAT position and that it is impossible to gauge this fully on a forum such as this.

Regardless of the level of expertise of contributors their advice is of limited value in this context as by necessity they are advising on the basis of limited information and their advice may be more liable to misinterpretation than might would otherwise be the case.

For what its worth, bazermc, I think you made pretty much the same point yourself but in a different way.
 
bazermc said:
You may be entitled to claim the rental tax credit worth €330 per year.
Have a read of the info on the revenue website regarding this credit.
Click to expand...
I thought that only the tenant could claim this - in this case the children and not the parent? And then it would only be beneficial if they were paying tax?
 
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