Reduce Vat Threshold

I have an airbnb which is a year old and had a lot of construction/renovation costs before opening which I paid vat on , can I offset these previous vat costs to reduce my sales turnover for vat e.g. Sales turnover €50,000 less vat €11000 on construction costs to bring me under the €40,000 threshold? so I then don't have to register for vat, Thanks

I would say talk to your accountant.
You can only offset vat paid out vs vat received.

Thanks for your reply, I was thinking of the scenario per the revenue site example below:

I would not think so, the example is vat on stock for resale, yours is vat on construction, and your rental income is what you charge vat on.

Not same as revenue example,

Also there used to be an exclusion not to allow preletting expenses against rental income.

I'd say the vat is sunk and you can only use the construction costs incl vat against any capital gains if you ever come to sell.

Also is the Airbnb a separate property rather than renting rooms in your own house.

Limfc1 said:

I have an airbnb which is a year old and had a lot of construction/renovation costs before opening which I paid vat on , can I offset these previous vat costs to reduce my sales turnover for vat

Click to expand...

Absolutely not.

Otherwise, if you have any specific concerns about VAT you should consider getting proper advice from a VAT consultant, not an accountant.

It's a very dangerous tax and very easy to get wrong.

Yes it is a separate airbnb not renting rooms in my house.

I have an airbnb in my own name, run it and it is paid into my account, my husband has a separate airbnb in his name and paid into his account and runs it himself, can we have 2 separate vat thresholds?