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Posted Mon, 12 Aug 2024 15:38:22 GMT by Gabs Maddison
My online letting agent has informed me that they will no longer be charging me VAT and should not have been charging me - B2B overseas landlord with my place of belonging overseas. They told me they would not be claiming this back for me and that I had to register for VAT to claim the money back. I have had a couple of phone calls to HMRC to get clarification on this. So can I just double check I have understood correctly as there is a lot of legislation to read around the conversations and what I was directed to read. Firstly is it correct that the company have to claim it back. I have read Section 80 1984. ‘ the only person entitled to claim back overpaid VAT from HMRC is the person who accounted for it on their tax return. Secondly, am I exempt from registering for VAT as a NETP as an overseas seller where all my sales (holiday lets) are made through an online marketplace to non business customers? My turnover is small. Thirdly, am I also exempt from payments to my landlord ( leasehold), cleaning and maintenance etc? If I don’t have to register, do I need to have and exemption certificate? Many thanks
Posted Tue, 13 Aug 2024 08:45:33 GMT by HMRC Admin 21 Response
Hi Gabs,
If an online letting agent is providing an intermediary service to you as an overseas business then this would normally come under the General Rule of Services Rule and would be Outside the Scope of VAT.
Please see the guidance below:
11. Intermediary services.
If the VAT has been charged incorrectly then it would be the responsibility of the supplier to amend this, to raise a credit note and to amend their VAT returns.
Please see the guidance below:
4. Correcting VAT errors on a return already submitted
However if you are an overseas business and you are making supplies of land/property in the UK then the Place of Supply of your service will be in the UK if the property you are letting out is in the UK.
Please see the guidance below:
7. Land related services
If you are renting out holiday accommodation then this be a taxable supply in the UK.
Please see the guidance below:
1. Overview - hotels-holiday-accommodation-and-vat-notice-7093#overview
There will therefore be a requirement to register for VAT in the UK.
Please see below:
3. Working out whether you need to register
Who should register for VAT (VAT Notice 700/1)
Thank you.

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