If you’re in the process of purchasing a commercial premises, you may not be aware of the VAT involved in the transaction. As we recently discussed, purchasing a commercial property differs in many ways from purchasing a domestic property. Not only do you have to consider the differences in insurance policies, mortgage applications, and the more personal elements of moving your staff and existing office, you also need to be aware of the commercial VAT payment that you will face.
Many business owners and would-be commercial premises buyers are unaware of this last element, causing them to lose out on their commercial property because they are unable to meet the high cost of the commercial VAT payment in time. BloomSmith cover the most crucial elements that you need to know below:
- Purchasing a commercial property will probably incur you a VAT charge. You will certainly be charged VAT if the seller has ‘opted to tax’. Therefore, you may end up with a large VAT payment that you never expected.
- This VAT payment is usually recoverable. Either you can recoup it because you are operating a fully VATable trade within the commercial premises or, if you are leasing it out, you opt to charge VAT on the rent and tax the property or from selling it on.
- Because the VAT payment is recoverable, finding that you have a large unexpected commercial VAT charge does not have to mean the end of buying a commercial property.
At BloomSmith we have seen many individuals nearly have their commercial property purchase fall through due to the unforeseen, and extremely large, VAT charge. However, this does not need to be the case. We are a specialist company for providing unsecured loans to those in need of it for a VAT payment. We even have a fast-track service, so no matter what stage of the process you’re in, there is a good chance that we can help to ensure you don’t lose out on your commercial property. Talk to our experts today on 020 3488 3411.