VAT ON MAINTENANCE PROVIDED TO ESTATE AGENT

VAT ON MAINTENANCE PROVIDED TO ESTATE AGENT

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hi everyone!

would be very grateful if someone can clarify a VAT issue I have with the estate agent, provided maintenance services to a their letting portfolio

of residential properties for £10k, I am registered for vat, they are not registered for vat, they say that they do not have to pay me vat as their business is zero rated,

a bit concerned as I will claim vat for materials and don't want to find myself liable. Recently left my accountant so have no one to address for time being.

may thanks in advance !

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By bivoliur
03rd Mar 2015 15:34

vat

sorry, the estate agents are registered for vat

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By spidersong
03rd Mar 2015 15:51

Ask them for the law to back it up...

... they won't be able to provide it.

VAT is charged on any taxable supply made by a taxable person in the UK in the course of business (Para 4. VAT Act 1994).

I'm assuming this all takes place in the UK, both businesses are in the UK, the properties are in the UK. If so then you're a taxable person (you're registered for VAT), so that only leaves whether the supply itself is taxable.

Since you're registered and charging VAT to others (presumably) then you likely know the answer. But only supplies that are either zero rated or exempt are not taxable supplies.

So if you're providing them with printed matter, banking services, funeral services, health services, building new houses, selling them food (and a few others) then you can get away with not charging them VAT. But building maintenance isn't in the schedule of zero rated or exempt services.

So in short they either don't know what they're talking about or they're trying it on - you need to charge them VAT.

(and in any case their leting business makes exempt supplies not zero rated supplies, which means they can't claim back the VAT you charge them, which is probabaly why they don't want to be charged any).

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By bivoliur
03rd Mar 2015 16:13

many thanks!

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