Is VAT payable on...

[divlong]

I'm trying to work out some rough figures for a friend who runs a pub, as her accountant's figures don't seem right.

Is VAT payable on the rent paid to the pubco, and is it payable in the business rates paid to the council. i.e. is it reclaimable.

Cheers

Duncan

[Markandshez]

Rent can be VATable - it depends on the landlord. If they decide to charge VAT, then it is reclaimable, but if they dont it obviously can't

Business Rates I am 95% sure do not attract VAT, but I could be wrong there. Business rates are paid direct to the treasury from your council so the government may have found a way of shoving the extra 17.5% on, but without checking our Business Rates bill I can't tell for sure

[divlong]

Well, as we're talking about a pubco here I am fairly sure they'll be VAT registered and would therefore, I think, be obliged to collect VAT.

I think that this is where the accountant is going wrong, by not claiming this VAT back. He' not a specialist Pub accountant.

It would probably be a bit daft to have business rates VATable as everyone would just claim it straight back again - unless they're not VAT registered of course.

Cheers

Duncan

[buildersmate]

A simple inspection of the relevant invoices will tell her whether VAT was levied or not. If she's VAT-registered, then she has to tot up all the VAT paid on her invoices, compare the figure to the sum of the VAT charged on her products/ervices to customers, and pay (or reclaim) the net difference from the VAT-man. Its not difficult - even for an accountant.

[cascarelli]

Yes, there would be VAT on rent, if the landlord is VAT registered.

There is no VAT on rates.

Is your friend registered for VAT? If she is then she will be able to reclaim any VAT paid.

[-Zorro-]

If the owner has "elected to tax" the property then it is vatable