Is there VAT on a licence fee?

Is VAT chargeable on rent and licence fees? Commercial property is exempt from VAT but landlords and licensors can exercise the “option to tax”. If a landlord (or licensor) has waived the VAT exemption, then he must charge VAT on rent and certain other payments made under the lease or licence.

Does licence have VAT?

A TV Licence is exempt from Value Added Tax (VAT). Therefore the price of a TV Licence will not be affected by any increases or decreases to the VAT rate.

Is licence to occupy Vatable?

Since the licence which is exempt from VAT is a “licence to occupy land”, it does not matter whether it is characterised as a lease or a licence. Both are exempt and both are equally subject to an election to waive exemption where the law permits.

Do you pay VAT on government services?

The scope of current rules 1.12 Most of the activities of government departments are outside the scope of VAT, either because they are not carried out by way of business or are outside the scope of VAT as they are statutory in nature.

Is there VAT on serviced offices?

Simply put, if the agreement grants right of occupation of an office for an agreed duration in return for payment, and gives the right to exclude others from that office then it is a licence to occupy land. If you meet this criteria you are making an exempt supply and therefore DO NOT charge VAT.

What is the difference between licence fee and rent?

A lease is a transfer of an interest in a specific immovable property, while licence is a bare permission, without any transfer of an interest. A lease creates an interest in favour of the leassee with respect of the property, but a licence does not create such an interest.

Which items are VAT exempt?

Brown bread.

What dont I pay VAT on?

Zero-rated items As well as the reduced rate, there are a number of products on which no VAT is charged. These include most food, children’s clothing, books and magazines, and goods sold in charity shops which have been donated by members of the public.

What is a license to use property?

What is a License to Use Property? A license is contractual authorization by the owner to do something on the owner’s land that would otherwise constitute as trespass. A license is a useful property tool for owners because they are revocable. An owner has the power to stipulate conditions of use and time constraints.

What is the difference between a letting and a licence?

A tenant in a lease can exclude all others, including the landlord. On the other hand, licenses do not grant tenants full control over the property. A licence is merely a right to occupy, it does not give a tenant the right to exclude the landlord.

What services are VAT exempt?

There are some goods and services on which VAT is not charged, including:

• insurance, finance and credit.
• education and training.
• fundraising events by charities.
• subscriptions to membership organisations.
• selling, leasing and letting of commercial land and buildings – this exemption can be waived.

How can I avoid paying VAT?

If you happen to offer a variety of products or services which are distinctly different, you may be able to avoid passing the VAT threshold by chopping up your business into smaller businesses that handle one product or service each. Your annual revenue is now split up between these separate businesses.

Can a VAT licence be used as a letting licence?

However with a licence, one must first determine if it is a licence/supply of a service that can be characterised as other than the passive making available of property.

How much does it cost to get a goods vehicle licence?

Fees for goods vehicle licences When applying for a goods vehicle operator’s licence, you’ll have to pay: a one-off fee payable on application a fee for the issue of a licence a fee for the issue of an interim licence (if applicable) You’ll then have to pay a continuation fee every 5 years to keep your licence active. Action Fee

Can You charge VAT on services outside the UK?

What qualifies and the VAT rate you charge depends on the type of goods or services you provide. No VAT is charged on goods or services that are: exempt from VAT. outside the scope of the UK VAT system.

How does VAT apply to different goods and services?

VAT rates on different goods and services. A list of goods and services showing which rates of VAT apply and which items are exempt or outside the scope of VAT. If you’re registered, you have to charge VAT when you make taxable supplies. What qualifies and the VAT rate you charge depends on the type of goods or services you provide.