Quick VAT calculation help

NoQuarter

Hi all

For trading income from renting a property through a company, where the only income is rent and the only expenses are gas, electricity, internet, groceries etc, is the VAT calculation as follows:

1,000 - rent in
150 - gas, elec, internet etc

Get 9% of the rent in figure = 90e.

Get 23% of the expenses = 34.5e

90 - 34.5 = 55.50e

So the VAT liability is 55.50?

Thanks

Victor

For most property rentals, VAT doesn't apply. It would for short-term rentals (you mention groceries).

VAT rates vary, depending on the type of product. Most food is 0%. https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/VAT-rates-database.aspx

There are turnover limits before you have to register for VAT: https://www.revenue.ie/en/vat/vat-registration/who-should-register-for-vat/what-are-the-vat-thresholds.aspx If you have a small turnover, registering and making returns every 2 months might not be worth it.

thegolfer

Victor wrote: »

For most property rentals, VAT doesn't apply. It would for short-term rentals (you mention groceries).

VAT rates vary, depending on the type of product. Most food is 0%. https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/VAT-rates-database.aspx

There are turnover limits before you have to register for VAT: https://www.revenue.ie/en/vat/vat-registration/who-should-register-for-vat/what-are-the-vat-thresholds.aspx If you have a small turnover, registering and making returns every 2 months might not be worth it.

OP go speak to an accountant, VAT on property is a complex area, not for here.

No threshold limits for VAT registration when property concerned.

NoQuarter

Thanks.
Yes it's over the threshold - I always like to understand the basics of what I am asking an accountant to do so was just trying to figure out the general calculation methodology, understood that there are exceptions on exceptions on exceptions...