I run a fully taxable business we charge VAT on all our sales and recover VAT on all our costs. We’ve recently bought some commercial property near our offices as an investment (we didn’t pay VAT on this) which we intend to rent out to a third party at least in the short term. I’ve come across the option to tax in the past but I know from experience that VAT on property can be a minefield. What are the implications of opting to tax and should I be considering this?
Answer
As a fully taxable business you might be forgiven for thinking that VAT is a relatively straight forward tax. However you’re right to be wary around property as it’s an area that trips up many businesses not confronted day...
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I run a fully taxable business we charge VAT on all our sales and recover VAT on all our costs. We’ve recently bought some commercial property near our offices as an investment (we didn’t pay VAT on this) which we intend to rent out to a third party at least in the short term. I’ve come across the option to tax in the past but I know from experience that VAT on property can be a minefield. What are the implications of opting to tax and should I be considering this?
Answer
As a fully taxable business you might be forgiven for thinking that VAT is a relatively straight forward tax. However you’re right to be wary around property as it’s an area that trips up many businesses not confronted day...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
