I act for a client who owns some property in a partnership. The partnership is VAT registered and the property is opted to tax so they charge VAT on the rent in the normal way. They also own a separate parcel of land with some lockup garages which are rented to individuals and businesses; the garages are not tied to any residential property. The users are allowed to use the garages for any legal purpose but are mainly used for storage or parking vehicles.
My client has not declared VAT on the garage income because they have never opted to tax this plot of land but I think this is incorrect. If so should my client issue a VAT only invoice retrospectively to the garage renters? The total VAT will be less than £10 000 for the three-year period since the garages were first rented out ie ...
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