Residential property
Residential rent is normally exempt from VAT. This means you do not charge VAT but also cannot recover input VAT on related costs.
Commercial property
Commercial property is normally exempt unless the owner has opted to tax. If opted, VAT is charged at the standard rate.
New builds and conversions
New residential builds are often zero-rated, meaning VAT is charged at 0% but input VAT can be reclaimed.
Common mistakes
- Assuming all rent is VAT free
- Not understanding option to tax
- Incorrect VAT recovery on costs
Need help?
Property VAT is complex and depends on the specific transaction and structure.