vat on disused garages ?

[DD55]

May purchase unused garages from an exempt charity that is vat registered. I am not vat registered. They have elected not to tax and purchase price does not include vat.
They wish to put a clause in the contract that if vat becomes payable at a later date than I am liable to pay it.
Their solicitor seems to be hedging their bets at my potential expense.
Many thanks for replies. D

[les35]

I came across this very recently, on behalf of another purchaser. VAT arises at the point of the transaction. Unless there is any misrepresentation on your part I cannot see that any VAT charge can arise at a later date. But you may need to (1) negotiate, and (2) take fuller advice, to ensure the whole contract is both legally correct and fair to you.

[section 44]

They wish to put a clause in the contract that if vat becomes payable at a later date than I am liable to pay it.

I cannot see that any VAT charge can arise at a later date

Clearly there's a difference between:

a VAT charge arising later (e.g. a retrospective change of law); and

there already being a VAT liability (e.g. because the seller has opted to tax the garages but is unaware that it has done so) and this transpiring/coming to light later.

Sounds more like your seller is really trying to cover off his risk of the latter point rather than the former