Vat on Rent of Commercial Premises

Wexford96

Hi.

I have a PAYE day job.

I've owned a commercial unit for approx. 10 years. I had it rented to a business all that time which paid me rent each month. This business left my unit this year and I recently had a new business move in.

This new tenant preferred to pay one years rent up front and the letting agent also charged VAT to them. The tenant is now asking me for a VAT invoice. 

My questions are:

1. Is charging VAT to the tenant necessary? I never did with previous tenant. This VAT sum is now with me, I'll pay it all to revenue, and tenant will get it all back. 
2. If it is a legal requirement to charge VAT, where could I get a VAT invoice book? Are these things standard?
3. Why was it in the tenants interest to pay whole years rent to me? What advantage does it bring them?

Thank you.

gudede

It all depends on contracts and vat rules. You need to speak with your accountant. VAT on property cant be tricky.

Xander10

https://www.boards.ie/discussion/2058223338/vat-on-rent-of-commercial-premises

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