Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

VAT on commercial leases

  • 23-10-2012 5:15pm
    #1
    vince377
    Registered Users, Registered Users 2 Posts: 1 ✭


    as a limited company, I am planning to invest in a building with 4 different existing leases:
    2 commercial leases not subject to VAT
    1 commercial lease subject to VAT
    1 residential lease (no VAT)

    The sale would not be subject to VAT (no VAT refund was claimed on refurbishment/construction by the previous owner).

    In this situation, would the limited company be able to fully claim VAT back on its expenses (like accounting, supplies, lawyer fees etc)?

    My guess is that it would be able to claim only 1/4 of VAT (assuming each lease is for the same annual amount) for general expenses plus the full VAT on expenses exclusively incurred for the VATable lease.

    Am I correct?
    Do you have some links to the revenue website that would be relevant?

    Thanks
    V


Comments

  • #2
    Itchianus
    Registered Users, Registered Users 2 Posts: 230 ✭✭Itchianus


    vince377 wrote: »
    as a limited company, I am planning to invest in a building with 4 different existing leases:
    2 commercial leases not subject to VAT
    1 commercial lease subject to VAT
    1 residential lease (no VAT)

    The sale would not be subject to VAT (no VAT refund was claimed on refurbishment/construction by the previous owner)
    are you sure about this (see minefield reference below...)
    vince377 wrote: »
    In this situation, would the limited company be able to fully claim VAT back on its expenses (like accounting, supplies, lawyer fees etc)?

    My guess is that it would be able to claim only 1/4 of VAT (assuming each lease is for the same annual amount) for general expenses plus the full VAT on expenses exclusively incurred for the VATable lease.

    Am I correct?
    Do you have some links to the revenue website that would be relevant?

    Thanks
    V

    You've come to exactly the wrong place for advice - VAT on property is renowned in the accountancy profession as a minefield, to be left to those who specialise in it...

    /thread


  • #3
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Vat on property is a highly complex area that has special rules regarding when an item is reclaimable or not and indeed when VAT is clawed back. Getting it wrong nearly always results in someone having to write a big cheque.

    You need professional advice on this one and due to the potential for you getting the wrong advise from someone here I am going to lock this thread for your own safety.

    Regards

    dbran


This discussion has been closed.
Advertisement