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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have to pay vat on a commercial property as in error the

Resolved Question:

I have to pay vat on a commercial property as in error the VAT wasn't put on the sale price, I run a small on line business, do I have to become VAT registered for the business because of the propery.
Submitted: 1 year ago.
Category: Tax
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.

Has the vendor issued a VAT invoice for this transaction?

Customer: replied 1 year ago.
Expert:  bigduckontax replied 1 year ago.

Then unfortunately you do have to pay the VAT.

You do not have to become VAT registered over this transaction. VAT registration is only required if your turnover ie sales excluding exempt items, in any year, exceeds 83K. However, if you are not registered you will be unable to reclaim the input tax you have incurred on the purchase.

You could register voluntarily, but you would have to operate VAT on your trading for two years before you could de-register again. Furthermore, if you sell the property whilst registered you will have to charge VAT on the selling price which may make the premises unattractive to buyers who are not themselves registered.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.