Registering for VAT when purchasing a house for refurb and flip.

[Chas]

Are there any advantages / disadvantages to registering for VAT with revenue, if I'm thinking of buying a property to refurbish it and sell it on?
This is a one off property adventure, for now anyway.

 

[DannyBoyD]

Not the question you asked, but unless you are very experienced, have trade knowledge and are getting the property dirt cheap (and even then); I would encourage a lot of caution.

Refurb to rent might be more viable, esp if you can be creative in regards to the room layout & usage to maximise your return. (and by that I don't mean triple bunk beds in each room).

 

[Davidh]

What kind of property is it?

If you can register and there is Vat on the sale, the big advantage is that you take over the tax life, hence can avoid paying the Vat until disposed of to a non registered person. You may also be able to claim the Vat back on materials.

Note there are two types of Vat schemes for property depending on first registration, and I really would recommend professional advice.