VAT on rent | AccountingWEB

VAT on rent

My client is renting a yard from a third party. VAT has been added to the invoices, but when queried, the landlord has no idea whether there has been an option to tax on the land or not. As it is a yard with a few outbuildings on it rather than an office building, I am sceptical, although I am no expert on VAT and land.
I have advised the client that if he is charged VAT when he shouldn't be, HMRC could disallow it and demand he repays it to them. It would then be up to him to recover the incorrectly charged VAT from the landlord. This could clearly be riddled with problems and cost my client a large amount.
Does anyone have any ideas about how best to proceed? The landlord's attitude is "if in doubt, add VAT" and he won't budge. Can we check whether VAT should be applied to rent of this land anywhere?

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Tell him you are going to write to HMRC

Richard Willis |
Richard Willis's picture

Not so Euan

neileg |

Option to tax land

Euan MacLennan |
Euan MacLennan's picture

Would he have any evidence?

Anonymous |

If in doubt...

Anonymous |

Lease terms

Anonymous |