VAT Invoicing

Value added tax (VAT) is a cost which applies to commercial property and development finance cases. Most owners of commercial property opt to tax, making any future buyer liable for VAT – currently 20% – on the purchase price.

Understanding VAT can be complex and can cause challenges, particularly in terms of funding when a buyer has to find the finance for the property, as well as stamp duty and VAT. It can be a barrier to some purchases, as although the purchaser will be able to reclaim the VAT paid, there will be a period of time before that is processed leaving the purchaser with less liquidity.

A proposed solution of offering the VAT sum amount upfront, by means of a loan, can ease this issue and ensure the safe completion of your project. We work with trusted specialists who can do this for you.

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WHAT DO YOU NEED TO KNOW ABOUT VAT INVOICING?

Having to add VAT as well as stamp duty to the purchase price can be very limiting for investors. This is where VAT invoicing can come in and relieve some of the financial pressure.

Commercial property owners can opt to tax, charging VAT when selling or leasing their property, the new owner must then pay VAT on the purchase price. The property is eligible to be taxed for 20 years by the new owner.

If an option to tax is exercised by the owner of the property, they can then charge VAT on all supplies they make relating to that property, including when they choose to sell the property. Businesses are then able to claim back VAT on incurred costs such as refurbishment.

Enness works with a trusted partner who can provide VAT invoicing to clients; covering the VAT bill up front, whilst you wait to be reimbursed by HMRC.

 

HOW CAN ENNESS HELP WITH VAT INVOICING

Enness works with a network of trusted partners, and can put you in touch with a specialist in VAT invoicing who can support you with your commercial and development finance requirements.

To discuss your purchase with one of our expert brokers, get in touch and we would be delighted to chat through your options and refer you to our partner as appropriate.

 

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