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Is VAT payable on sale of Commercial property ?

A transaction between two parties, the seller having elected to be VAtable and the buyer not VAT reg

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Buyer not VAT registered and Seller has made the VAT election. Doers this transaction simply makes the transaction 20% more expensive for the buyer or are there other remedies open to the buyer? Can anyone please advice.



Replies (6)

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By zarar
15th Apr 2019 15:12

You need to get professional advice

However, the status of the purchaser is irrelevant, it's the status of the building that is relevant here

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Replying to zarar:
By lionofludesch
15th Apr 2019 15:25

zarar wrote:

You need to get professional advice

Too right.

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By Wilson Philips
15th Apr 2019 15:21

Not only will the purchase price include 20% VAT but depending on the price the SDLT charge may also be 20% higher than it might otherwise have been.

You don't say what the property is to be used for, but there may be one or two options available to mitigate the VAT charge.

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Replying to Wilson Philips:
By AkinAkintola
16th Apr 2019 09:37

THanks Wilson,
The property is for a dental practice


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By Les Howard
15th Apr 2019 18:13

What is the buyer intending to do with the building?

And, get professional advice.

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Replying to leshoward:
By AkinAkintola
16th Apr 2019 09:38

Hi Les,
The property is for a dental practice a VAT exempt sector because of its NHS services

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