Is VAT Charged on Property Rental Payments?
It depends on the individual property. Should a landlord have ‘opted tax’ for VAT purposes, rental payments will be subject to VAT, otherwise, rental payments are exempt from VAT. If your business is VAT registered, your costs will normally be higher, whether the landlord has opted tax or not. You can reclaim any VAT you pay, in the same way as you do for other business purchases.
However, if your business is not VAT-registered, or if you make VAT-exempt supplies, any VAT charged on rental payments will increase your costs.