Renting Desk Space vs Renting Land

Renting Desk Space vs Renting Land

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Hi,

VAT registered client has rented an office and want to sublet to others.


Their intention is to sublet land and therefore not to charge VAT on this. (i.e. not opt to tax)

I understand that if this was deemed a "service" then this would be a vatable supply.

Is there any way of making sure this situation is subletting land rather than offering a service (i.e. renting desk space)

It is in the clients contract with the "main" landlord that they are allowed to sublet I'm just a bit worried that we will be on the wrong side of "substance over form"

Thanks

Ben

Replies (3)

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By User deleted
08th Oct 2015 11:48

What does the sub-tenant get for their money? Any services, utilities, etc.?

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By User deleted
08th Oct 2015 11:55

A desk is not land

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By User deleted
08th Oct 2015 12:24

Correct

A chair is not land.

 

Whether it is exempt from VAT is another story. Definitely not land

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