I am a landlord for a property which is let to two tenants across two floors.
As landlord, I pay for the Electricity supply and usage and recharge this to the tenants according to their usage (the top floor has a submeter).
I absorb the costs for the shared areas such as the entrance lobby etc.
I pay 20% VAT on the supply and overall usage but both tenants' usage falls below the de minimis usage.
Should I be applying the standard or reduced rate of VAT when recharging their indivual usage to the tenants.
The building is opted for VAT and we charge this on all other supplies.
Any advice is much appreciated.