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Posted Tue, 30 Jul 2024 16:30:28 GMT by NRL_UnitedStates
I am a registered non resident landlord. I cannot find this information in the guidance notes or anywhere else online. If I need to pay for any repairs on the flat, do I need to pay VAT or am I exempt from it? Also, for my flat, I receive a common charges invoice every quarter. There is also VAT charged on it from the management company that provides the invoice. Am I exempt from that? If I have paid VAT every quarter, is there a way to reclaim? Thanks!
Posted Wed, 31 Jul 2024 08:22:21 GMT by Jay Cooke
Renting/letting a flat (apartment/condo/house) is not subject to VAT (VAT exempt), this means you cannot charge VAT on rent to tenants in flats/dwellings and you cannot register for VAT or reclaim VAT on costs incurred. VAT is correctly charged by the managing agent because property letting is a "land related supply" and the place of supply for land related services is where the land is, the land is in the UK, so UK VAT applies regardless of where you, the customer, is based. If you have repairs to the property, the contractors/workers will charge VAT if they (the contractor) is VAT registered, if the contractor is not VAT registered then they will not charge VAT. Link here to place of supply of land (section 7). https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec7
Posted Wed, 31 Jul 2024 17:38:48 GMT by HMRC Admin 20 Response
Hi,
If you are receiving sevices relating to land/property in the UK then the VAT would need to be charged as the Place of Supply of the Service would be where the land is situated.
Please see the guidance below:
Place of supply of services (VAT Notice 741A) 7. Land related services
When you state you are a regisred landlord do you mean you are registered for VAT in the UK?
Thank you.

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