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VAT - Agency relationship

VAT - Agency relationship

Hi to All

One of my clients, the non-resident company which owns a hotel and holiday flats in the UK.  The company uses one UK registered company to manage the hotel and the flats. The agent (UK registered company) has a bank account which is being used for holiday flats and hotel. The agent (UK registered company) prepares an Income & expenditure report every quarter of the rental and hotel business and remit funds to the non resident company.

The question is that to charge and claim VAT on rental & hotel income & expenses, the non-resident company should be registered in the UK or it could be done through the agent company which is a UK registered company.  


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25th Apr 2012 12:13

Register for VAT

Sch 4A provides that the place of supply of the hotel accommodation is where the hotel is situated. This means the non-UK company is required to be registered in the UK. It can, of course, have all the paperwork delegated to the agent.

You need to apply using a hard copy VAT1; you cannot register online. Ring the NETPU (Non-Established Taxable Persons Unit) on 01224 404818 for more information.

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By Tausif
18th Nov 2012 21:16

VAT registeration




Do we determine the VAT threshold for rental agencies based on Commission income? Or do we have to account for the rent received from tenants which is then paid over to the land-lords?





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