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jeffrey
24-05-2011, 15:01 PM
Under the now-operative Standard Conditions of Sale (5th edition), figures in the Contract- so far as concerns the property price and the contents- include VAT. However, Special Conditions can make explicit provision to the contrary.

Gordon999
30-05-2011, 09:12 AM
I beleive that partially built houses sold before site completion is a treated as a trade in supply of property and is subject to standard rate VAT. But if it is sold after site completion, it becomes VAT exempt .

But where can you find rules for leasehold property ? Is an extension of lease from 80 years back to 99 years subject to VAT ?

jeffrey
31-05-2011, 09:50 AM
Assume a purchase (V to P). Whether a transaction involves P paying VAT depends on these factors:
1. Is V a VAT-registered trader? If yes, see 2; if no, P pays no VAT.
2. Is the transaction subject to VAT at all? It might be:
a. zero-rated (and, if so, P pays no VAT);
b. standard-rated (and, if so, P pays VAT); or
c. exempt (and, if so, P pays no VAT unless V waives exemption).
3. Unless the Contract stipulates that P must pay VAT on top of the purchase price stated, the price is deemed to be inclusive of VAT [if any]: SCS (5th. edition) say so.