Option to Tax

As we explained in our detailed property VAT guide (link), commercial property is exempt from VAT with exception of new commercial building (less than three years old). The property business can choose to convert the exempt property to taxable property by opting to tax. The main benefit of the election of “option to tax” is that

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Domestic Reverse Charge (DRC)

To tackle the prevalent VAT fraud in the construction sector, the government introduced Domestic Reverse Charge (DRC) rules with effect from 1 March 2021. Under the domestic reverse charge (DRC) rules, as name suggests, the customer instead of the supplier is liable to account for and pay the VAT to HMRC. For example, Developer Ltd is

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VAT Registration

If your property business falls under the scope of VAT and would like to register for VAT, the property VAT experts at UK Property Accountants can help to advise you and register your business for VAT. Property VAT is usually complicated compared to registering a non-property business for VAT because of special additional forms and interest

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VAT Return

VAT Return

If you are a VAT registered business, you must prepare, and complete VAT returns quarterly or monthly. In addition, if your annual turnover is above £85,000, you will also need to comply with Making Tax Digital (MTD) which requires you to prepare and submit VAT returns using MTD compliant accounting software.In the property sector, generally,

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