Charity Shop Rental VAT

[Wantila]

Hi
I am hoping to open a charity shop & on the paperwork that's just come through they have added VAT to the rent.
Obviously being a charity and not VAT registered, I cannot claim this back. My question is, can I ask them not to charge VAT upfront being a charity?
Many thanks
Ian

[greybags1]

Best you have a read of VAT Notice 742A especially section 3.5 as well as VAT Notice 708 section 14.

You may wish to reconsider the structure of this venture. For example thought could be given to having the shop trade through a wholly owned subsidiary of the charity and this limited company being VAT registered? If VAT registered this company will need to charge VAT on its sales depending on what is actually sold.

[les35]

A Charity shop selling donated goods should register for VAT, to allow it to recover VAT on rent, etc.