# VAT on rent?



## volda (1 Sep 2006)

Is it payable? My husband is paying €500 a week rent to landlord(restaurant)or so we thought, but has now been told it is actually €605.


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## Ravima (1 Sep 2006)

lease shoudl clarify this, was the payment exclusive or inclusive of VAT? if you are VAT rgistered, can you not reclaim anyway?


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## Solutions (1 Sep 2006)

The contract should state this.


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## volda (2 Sep 2006)

Lease says €500 per week - it does not stipulate inclusive or exclusive of VAT. We were made to understand that it was the full amount payable.


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## liteweight (2 Sep 2006)

The lease should have stated 500 + VAT. If it does not, I'd assume the 500 to be VAT inclusive. Are you sure the landlord is registered for VAT. The other big issue I suppose is...are you registered because if so you can reclaim it.


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## volda (3 Sep 2006)

Lease says €500. Yes we are vat registered, but it is a pain to have to pay it and then get it back!
What is the legal position if the conrtact does not state one way or another whether vat is inclusive or not?


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## Glenbhoy (4 Sep 2006)

Commercial rents in my (allbeit limited) experience are normally quoted net as the VAT will normally be reclaimable by the the tenant and is an irrelevant cost.  It's not that big a deal to reclaim, although I agree that a legal document like a lease should specify details like this.
If you're happy with the premises there's no point in getting on bad terms with the landlord as there may be break clauses etc inserted in the lease.


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## Chas (20 Jan 2007)

My commercial lease states €500 inc of VAT - but doesn't state a VAT rate. I've checked on Revenue.ie and done some google searches but cannot find what VAT rate is applicable to rent. Does anybody know?


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## mirmick (20 Jan 2007)

21%


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## Chas (20 Jan 2007)

Luvly Jubly - another VAT expense to offset against my VAT. 

Funny the lease doesn't specifically state it but thats probably in case the rate changes eh?


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## 8till8 (23 Jan 2007)

Volda,
You should get both your solicitor and accountant to check whether VAT applies. Many leases are not within the VAT net and much of it has to do with the company structure that constructed the building. Generally speaking its a complex area and the absence of specifics in your lease agreeement, means it should be looked into quite closely.


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