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Where Taxpayers and Advisers Meet

VAT on rent to an offshore company

johnlondon
Posts:3
Joined:Tue Aug 16, 2016 10:53 am
VAT on rent to an offshore company

Postby johnlondon » Tue Aug 16, 2016 11:06 am

We have an offshore company that wants to sublet some office space from us. We have have an option to tax on the space we rent so I assume that we will need to add VAT on to the rent? Given the company is outside the EU will this be zero-rated or the full rate or have i got it totally wrong and it is for some reason exempt?

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: VAT on rent to an offshore company

Postby section 44 » Tue Aug 16, 2016 11:50 am

standard rated VAT (20%)

johnlondon
Posts:3
Joined:Tue Aug 16, 2016 10:53 am

Re: VAT on rent to an offshore company

Postby johnlondon » Tue Aug 16, 2016 12:12 pm

thanks - could I also ask what the reason is for it to be 20% rather than zero-rated?

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: VAT on rent to an offshore company

Postby section 44 » Tue Aug 16, 2016 2:09 pm

The supply is made in the UK and you have opted to tax the property.

johnlondon
Posts:3
Joined:Tue Aug 16, 2016 10:53 am

Re: VAT on rent to an offshore company

Postby johnlondon » Tue Aug 16, 2016 4:41 pm

thanks for this - you've been very helpful


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