VAT on commercial rent, can it be claimed back?

ando

Hi all, trying to understand a few things around VAT and finding it very hard to talk to anyone in Revenue.

My wife is setting up a small business and seen an office for rent for €400 a month. But that didnt include VAT, so the rent is now works out to be just under €500.

She is not registered for VAT but now looking into it.

If she does register for VAT, can she claim back the 23% VAT on the rent, so she effectively pays €400 for rent? Can she claim this monthly?

I understand she needs to charge VAT on services going forward, I believe this is 13.5%

TheShow

As far as I know, if she is registered for vat then she can claim it back. but best to talk to an accountant or something for full clarity.

Calahonda52

https://taxpolicy.gov.ie/wp-content/uploads/2011/04/0618.pdf

see point 6

generally, VAT is a bi monthly return so the concept of claiming it monthly is not applicable, you need to make a return and the net movement is what gets paid by or to Revenue.
However be aware that if the Revenue are always paying out in a new business, then they will come take a look

Watergirl4

You need to look at the impacts that VAT registration will have on her business. If she elects to register for VAT, she will then have to charge VAT to her customers (rate dependent on what she is selling). If she is selling to generally non VAT registered customers, this may impact her sales price (if they cannot reclaim the VAT)

Its important to look at the whole business plan and cash flow before electing to register for VAT

pullandbang

Watergirl4 wrote: »

Its important to look at the whole business plan and cash flow before electing to register for VAT

Surely you have no choice but to register once your turnover hits €37.5k?

Watergirl4

pullandbang wrote: »

Surely you have no choice but to register once your turnover hits €37.5k?

Of course, but in a start up situation it may not hit that in the first year or two per annum, so there may be an element of choice.