What are the VAT implications of letting property?
A recent First Tier Tribunal decision illustrates the need to carefully consider the VAT implications of letting property. Letting property is often exempt from VAT, but there are many exceptions. One of the exceptions is the grant of facilities for parking a vehicle, which is subject to VAT at the standard rate.
The First Tier Tribunal recently considered whether the lease of an area near a fuel station to a hand car wash business was the grant of facilities for parking a vehicle. The area was described as a car park in the lease agreement. Customers of the car wash business would wait in a queue to get to the car wash and they would then park their cars when their cars were vacuum cleaned. The First Tier Tribunal decided that a grant of facilities for parking vehicles been made and commented: “We have found that the fact that a person may not leave a vehicle does not render a vehicle any less parked.”
To find out how Garbutt & Elliott LLP can help your business comply with the complexities of VAT please contact Alex Millar or Naveen Sahney at firstname.lastname@example.org