VAT claim back on rented commercial property

[TheWeatherMan9]

Hi all,

My wife is setting up a small business, not registered for VAT and seen an office for rent for €400 a month. But that didnt include VAT, so the rent is works out to be just under €500.

She is not registered but if she does can she claim back the 23% VAT on the rent, so she effectively pays €400 for rent? Very importantly, can she claim this monthly?

I understand she needs to charge VAT on services going forward, I believe this is 13.5%

 

[Mary55555]

Hello,

Your understanding is correct ..

She can reclaim the vat provided she is vat registered and in receipt Of valid vat invoice.

She may not be obliged to register for vat due to the level of turnover. She will have to make sure that the services she provides aren’t vat exempt, if they are she can’t register ...

Before going down this route she will obviously have to consider the impact on the sales price tag - will customers pay higher prices??
There is also the additional admin costs ..

 

[Airwolf]

.

 

[TheWeatherMan9]

Thanks Mary, do you know if she can claim this VAT back from the rent monthly?

 

[Mary55555]

Thanks Mary, do you know if she can claim this VAT back from the rent monthly?

Yes .. see my original post ... second line..

 

[cremeegg]

Thanks Mary, do you know if she can claim this VAT back from the rent monthly?

No. The standard VAT period is 2 months.

Registering for VAT, is it required, is it desirable, is complex. If your wife is just seeing the €100 a month reclaim and registering to avail of that she should perhaps take advice. What is her turnover likely to be, are her customers likely to be VAT registered.