VAT Flashcards
1
Q
When is VAT chargeable
A
Seller of a new (within 3 years of completion) commercial property has no choice but to charge the buyer VAT. The seller of an old commercial property has a choice.
Why would they want to? If they have carried out work on building to get it ready for sale and want to recover input tax incurred.
2
Q
When would a seller of an old commercial building not want to charge VAT
A
If the Buyer makes only exempt supplies and they are unable to recover the VAT it has to pay. The Buyer may seek an adjustment to the PP if it has to pay VAT.
