Physical Therapy Centre - renting rooms to sole practitioners - is it VAT’able ?

M

MayMay

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In the case of a physical therapist who rents a premises with several rooms, under a commercial lease, She then sublets on a sessional or weekly or monthly basis, one or more rooms, is this a vat’able service ? In other words, does VAT need to be charged to individual sole traders for their room rent ?
 
Thanks mathepac. I guess the question, more correctly, is whether the activity of renting rooms on a sessional basis , rather than an exclusive basis, is a vat’able service? Assuming income levels are at the level where a trader would then become VAT registered, if the service was indeed Vat’able .
 
In general commercial lettings are VAT exempt with the landlord having the option to charge VAT. It's a complicated area though so specifics are worth checking with an expert.
 
You may not have the option to become vat registered. If your physical therapist business falls into the exempt category of activiites liable to vat then you won't have the option to charge vat on these services. I would add that if your customers are not vat registered, most likely from my understanding, then being vat registered isn't in your interest. For example if you invoice €50,000 per year and you are vat registered then €40,650 of this is your sales and the remainder is Vat which you pay to teh Revenue. Where customers have no capacity to recover vat then you are effectivly bearing the cost as it is included in your fees. Most businesses can recover Vat so whether they are charged Vat by their suppliers doesn't really matter (apart from cashflow) as they will get the vat back. It is unlikely that you registereing for vat will be to your benefit if it only enables you to reclaim vat on rent or lettings.
 
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