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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4181
Experience:  FCCA FCMA CGMA ACIS
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If I did not opt to tax when i bought a property and I am VAT

Customer Question

If I did not opt to tax when i bought a property and I am VAT registered do I have to pay VAT on the sale even though I am not charging it?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I bought the property from my previous landlord who had opted to tax. The VAT inspector allowed me to reclaim the VAT without me having to opt to tax but now I am selling it I can't charge VAT which I don't mind if I receive the full amount without any VAT liability
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. As far as I am aware as you did not opt to tax on purchase your sale does not attract the tax. As a general rule transactions in land are exempt from VAT, but an owner can opt to charge it. If, for example, a landlord opts to charge VAT on rentals then on sale they must charge VAT on the selling price. This may make selling a non competitive exercise and those not registered for VAT might jib at being charged an extra 20% on the striking price. I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 1 year ago.
You have not answered my question which is " will I have t pay the the VAT office any monet from the sale of my property which I have not opted to tax?
Expert:  bigduckontax replied 1 year ago.
With respect I have viz: 'as you did not opt to tax on purchase your sale does not attract the tax' Thus you will owe nothing to HMRC on sale.
Customer: replied 1 year ago.
Thank you!!
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance. Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 1 year ago.
Thank you for your help, you have answered my question.
Regards
Expert:  bigduckontax replied 1 year ago.
Please to have been able to help. Please don't forget my rating.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.