One of the biggest risks to a public authority’s full VAT recovery position arises where VAT costs relate to a VAT-exempt activity. In those cases, VAT is recoverable only if the annual value is comparatively insignificant, as tested through the annual partial exemption calculation. The higher the VAT costs, the greater the risk of irrecoverable VAT.
The sale, leasing and letting of property is the area where most VAT-exempt activities are found, and the levels of related costs also tend to be high. This means the VAT treatment of property transactions can have a significant impact on VAT recovery.
The option to tax is a UK VAT provision that allows a business to turn an otherwise exempt supply of land or non-residential property into a taxable supply. This allows the property owner to recover input VAT incurred on costs related to the property, such as renovations, repairs and professional fees. It can therefore be an important tool in securing VAT recovery where it might otherwise be lost.
This 90-minute online course will introduce the option to tax, how it is applied, what falls within its scope, and when it does not apply.
Key topics in the option to tax training include:
- what the option to tax is
- how the option to tax is applied
- what falls within the scope of the option to tax
- when the option to tax does not apply
- the link between exempt property transactions and VAT recovery
- how the option to tax can help protect input VAT recovery
Who will benefit from attending this Option to Tax VAT training?
This course will be relevant to public authority officers involved in property transactions, VAT recovery and related decision-making where exempt land and property activities may affect the authority’s VAT position.
PSTAX Pop-Up training details
Pop-Up training sessions are designed to give delegates practical guidance on specific VAT issues and recurring areas of risk.
The Option to Tax session will last up to 90 minutes with opportunities for delegate questions. The training slides and Q&A will be sent to delegates after the event.
The cost of attending Pop-Up training is £165 plus VAT for PSTAX Club subscribers and £180 plus VAT for other delegates. A 10% discount is available for bookings of two or more.
PSTAX Club subscribers can also use Learning Vouchers for Pop-Up training events.