VAT on office rents is one grey area during lease negotiations or disputes

More so during disputes when tenants keep using the property but with no valid contract

COVID-19 impacted all sectors of the economy including real estate. With a significant drop in business activities, office and commercial property owners faced requests to either reduce the rent or provide a moratorium to delay such payments.

This resulted in multiple negotiations where the landlord either allows the tenant to continue (at a mutually agreed rent, or the discussions falter and result in a dispute. We focus on the VAT impact that arises in such scenarios, potentially ending in two possibilities.

First, where the parties hold over the lease terms beyond the initial lease period and, second, where the discussions result in a litigation.





* click here if you have interesting news to share *