VAT – Value Added Tax


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VAT – Value Added Tax

Value Added Tax is a tax that is charged on the supply, actual or notional, of certain goods and services in the United Kingdom. In cases where the landlord has elected to charge VAT on their property, this tax will be payable by the tenant in addition to the rent paid for the demised premises.Currently levied at a rate of 15%, if the tenant is VAT registered, in most cases they will be able to recover the amount charged from Customs & Excise. This tax should therefore be comparatively neutral for most parties, except for the ultimate consumer.