Realreed VAT Case Leaves Landlord with £4.5m VAT Cost: A Christmas Nightmare

• Realreed Limited case from the First Tier VAT Tribunal has resulted in a £4.5m VAT cost for a residential landlord
• The case deals with the VAT liability on income from letting residential flats in London
• Realreed had treated the income as VAT exempt, but HMRC argued it should be subject to VAT at the standard rate
• The taxpayer failed in their arguments and the Tribunal ruled in favor of HMRC
• The case highlights the importance of all elements of a supply in determining VAT liability
• There are also VAT issues related to serviced residential lettings and the calculation of VAT due
• The Sonder Europe VAT case is currently under appeal by HMRC, addressing the use of the VAT margin scheme

Source: centurionvat.com

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.

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