Hi guys, this is my first question asked here.... and its a tricky one, I have had conflicting answers so will lay out the situation as easily as I can.
There are two 'sister' companies owned by the same directors. One company is a property rental company that owns a piece of land. The other company is a property developer.
The developer company is building residential properties on the piece of land owned by the rental company. The properties will be let out, by the rental company, on ASTs once completed.
The building materials etc are purchased through the developer company and are charged, by the supplier, 20% VAT.
The developer company invoices the rental company monthly for purchases/labour etc.
Both companies are VAT registered.
I am curious as to how you guys would handle the VAT aspect of claiming and recharging? I have had very conflicting information.
Any help/info would be greatly appreciated.