VAT Registered so do I get VAT back on estate agents commission?

zipp

Hello Everyone,

Earlier I posted a bit of a dumb question asking if I got VAT off property prices as I am VAT registered:rotfl:

What I meant to ask was do I get VAT back from any VAT related costs to the property purchase such as estate agents and brokers fees and commissions etc. even though the purchase may not be directly related to my business?

Thanks
Zipp

Doozergirl

If it isn't related to your business then no, you can't claim it back!

Just like I can't claim back the VAT on nice shoes.

GDB2222

Shame, isn't it.

Doozergirl

GDB2222 wrote: »

Shame, isn't it.

About the shoes? Damn right!

lee636

Doozergirl wrote: »

About the shoes? Damn right!

:rotfl::rotfl:

Evilm

If you are selling through the business then yes. If it is a private sell of your own home and not business related then no.

Sorry, didn't realise you were purchasing not selling. If you are purchasing there are no estate agents commissions for you to pay.

If it is being bought in the Business name then yes. If not then No.

JasonLVC

I'm assuming we're talking about a residential property (or "dwelling" in tech speak).

The sale of a dwelling is zero rated (only the very first time it is sold - that is, when it is brand new), all subsequent sales of a dwelling are exempt for VAT purposes.

Exempt means no input tax recovery allowed, be it for business or non-business use. Zero rated means the first sale (by the builder) is subject to VAT at 0% and allows the builder to reclaim input tax on the build. This also assumes that the property is sold through the builders business of course.

So the answer is No and it is vital to understand that the right to reclaim input tax is ONLY on the basis that the expediture was incurred in the furtherance of making a VATable sale.

Richard_Webster

I'm assuming we're talking about a residential property (or "dwelling" in tech speak).

The sale of a dwelling is zero rated (only the very first time it is sold - that is, when it is brand new), all subsequent sales of a dwelling are exempt for VAT purposes.

Exempt means no input tax recovery allowed, be it for business or non-business use. Zero rated means the first sale (by the builder) is subject to VAT at 0% and allows the builder to reclaim input tax on the build. This also assumes that the property is sold through the builders business of course.

So the answer is No and it is vital to understand that the right to reclaim input tax is ONLY on the basis that the expediture was incurred in the furtherance of making a VATable sale.

I agree. Some businesses waive their exemption from VAT in respect of commercial property because then they can claim the VAT back on legal, surveyor's, architect's etc fees related to the property. They then have to charge VAT on the rent if they are letting the property on business tenancies, but usually the business tenants will be VAT registered so it won't matter much to them apart from cashflow.