VAT applicable

VAT applicable refers to transactions involving commercial property that are subject to value-added tax. Whether VAT applies depends on the property's intended use and any tax elections made by the owner. For instance, standard lettings of office or industrial space are generally VAT-exempt, whereas real estate services provided by agents are taxable.

Property owners may opt into VAT taxation in certain situations, allowing them to charge VAT on income and claim input VAT on expenses—a tool particularly valuable during acquisition or refurbishment projects, as the input tax recovery can significantly improve cash flow.