Rebilling utilities (water, electricity, gas, sewage, waste disposal) and VAT in rental agreements. How to determine VAT rate and tax liability.

• Businesses renting out properties usually pass on the actual costs of utilities to tenants
• There are different methods of accounting for utility costs in rental agreements
• The method chosen can impact VAT taxation and when the tax liability arises
• Three basic options for accounting for utility costs in rental agreements are: tenant contracts with utility providers, flat-rate charges, or passing on actual costs to tenants (refactoring)
• The choice of accounting method is important for determining the moment of tax liability and applying the correct VAT rate
• If tenants contract directly with utility providers, the costs are not invoiced to the landlord
• In this case, the landlord only invoices rent and does not include utility costs in the invoices

Source: ksiegowosc.infor.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---