vat charged on rent by tenant to undertenant
Company A sells franchises and is a vat registered company. It finds suitable properties for its franchisee and is charged rent by the superior landlord. It then recharges this rent back to the franchisee.
Some superior landlords have opted to tax.
All of its franchisees are vat exempt (arrange financial products)
Does the company have to charge vat on the rents it charges?
(no other services relating to the property are provided to the franchisee)