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VAT on rent

  • 29-01-2012 4:16pm
    #1
    Registered Users, Registered Users 2 Posts: 5


    Hi,

    A family member of mine is considering renting his house to someone and I was wondering what the VAT implications for him would be. He is VAT registered and the lease would initially be for one year.

    I have been searching the internet but can't seem to find much on the topic. If anyone could point me in the right direction or even explain the implications to me I would really appreciate it

    Thanks in advance :)!


Comments

  • Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    My understanding on this is that unless vat was claimed on the property no va[HTML][/HTML]t will need to be charged.


  • Registered Users, Registered Users 2 Posts: 82 ✭✭Dell2009




  • Registered Users, Registered Users 2 Posts: 269 ✭✭Bobby1984


    Usually vat is not charged on renting of residential properties. However it depends on a number of factors including whether the property was built for resale (ie property developer) or if there was a waiver of vat exemption in place when buying the house.

    If your relative neither built the house or claimed the vat on the purchase of the house when purchasing then it is unlikely that vat will be returned on the rent.

    Caveat: Vat on property is a very tricky area so it is only when the in's and out's of the matter are discussed with a financial advisor will you get a certain answer


  • Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    As Bobby said VAT on property is a very tricky area, requires careful consideration of all of the facts before a correct answer can be given.

    You should seek professional advise and I am going to lock the thread.

    Kind Regards

    dbran


This discussion has been closed.
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