Frequently Asked Questions - Customs and Excise

Option to tax rents	Supplies of commercial buildings which would normally be exempt from VAT will, in the majority of cases, be standard rated if you elect to waive exemption (opt to tax) the property. This should allow you to recover some or all of the input tax you incur in making the building ready to receive income. Once you have opted to tax a property you must charge VAT on all the supplies you make from it. For example , if you charge VAT on rents received you must also charge VAT on any subsequent sale of the building. An option cannot be made retrospectively. For more information on this complex subject please refer to VAT notice 742 - Land and Property.

Option to tax rents

Supplies of commercial buildings which would normally be exempt from VAT will, in the majority of cases, be standard rated if you elect to waive exemption (opt to tax) the property. This should allow you to recover some or all of the input tax you incur in making the building ready to receive income.

Once you have opted to tax a property you must charge VAT on all the supplies you make from it. For example , if you charge VAT on rents received you must also charge VAT on any subsequent sale of the building. An option cannot be made retrospectively. For more information on this complex subject please refer to VAT notice 742 - Land and Property.

DisabledGo Information

Terms & Conditions