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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7052
Experience:  FCCA FCMA CGMA ACIS
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I am selling a property and have been asked by my solicitor

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I am selling a property and have been asked by my solicitor if I will charge VAT on the sale of the building, I am a Vat registered business and when I purchased the property 6 years ago i was charged Vat on the purchase price which I claimed back. I have NOT made an option to tax the land and buildings I am now selling. it has been suggested that I should not have claimed the VAT back as there is no option in place and I am therefore
JA: Have you talked to a tax professional about this?
Customer: I am selling a commercial property and have been asked by my solicitor if I will charge VAT on the sale. I am a Vat registered business making standard rated supplies.and when I purchased the property 6 years ago i was charged Vat on the purchase price which I claimed back. I have NOT made an option to tax the land and buildings I am now selling. it has been suggested that I should not have claimed the VAT back as there is no option in place and I am therefore
JA: Anything else you want the Accountant to know before I connect you?
Customer: Sorry not completed the message yet, I keep pressing return

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You will have to add VAT at the standard rate (20%) to any invoice for the sale of this commercial property as you opted to reclaim VAT on purchase. If your are selling to a commercial buyer registered for VAT there will be no problem as that organisation the will reclaim the tax on their next quarterly return.

Customer: replied 8 days ago.
Thank you - do I need to inform HMRC and complete form VAT 1614A
Customer: replied 8 days ago.
Can you clarify whether I need to notify HMRC of an option to tax the building by completing form VAT 1614A

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You do have to charge VAT on the sale as you reclaimed it on acquisition, sorry..

I would ;like to talk to you but I am answering your question from a time zone 6 hours ahead of BST thus making telephonic communication both impractical and expensive.

Customer: replied 8 days ago.
OK - I did not know of the time difference, I hope I will not be charged £44 as I have been waiting for your call and you are now saying you cannot make the call.

No, the telephone charge does not kick in until I advise thet the call has been successfully completed which I will not be doing in this case.

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