Commercial Property and Vat ( Rent )

[SideshowBob]

Hi Folks,

3 years ago I was a VAT registered sole trader and I purchased a small industrial unit to run the business from. I paid and reclaimed the VAT on this transaction.

In the last year I have de-registered for VAT ( as a sole trader ) as I set up a limited company and it's VAT registered now. I now rent this unit to the company and I understand that if I sell the property that I personally will have to charge VAT and return same to Revenue, however my question is:

As a private landlord, currently not VAT registered, renting this unit to a limited company, as I ok in NOT charging VAT on the rent charged ?

Thanks for your help and guidance...

Bob

 

[Nige]

If you don't charge VAT to the company you will have to repay the VAT you recovered when you purchased the property.

You should either grant a long lease to the company or waive your exemption from VAT on short term lettings. Get this fixed as soon as possible - and go to your accountant to do this.