VAT on rental income

Firstly VAT on property rules are complex.

20 years ago the Old Rules applied. question, would the VAT charged on the rents to date exceed the VAT reclaimed on the acquisition?

Is it a residential property?

1. New rules, no Vat on the sale/transfer of a second hand residential property.

2. Vat was claimed under the old rules. The sale triggers an end to the waiver and charging Vat on rents. A clawback of vat recovered by your dad, would only be any excess of vat recovered over and above vat paid over to revenue on rents. Given what you said above, there is probably no clawback, i.e. vat paid = to vat claimed at this stage. This is the only potential vat exposure.

3. You can start afresh and have no obligation to register for vat and no obligation to charge vat on rents.

4. Your dad can cancel his vat registration, if only registered for that property.

That's the likely position based on info supplied. Do a calculation to show the vat paid over on the rents versus vat reclaimed on acquisition to satisfy yourself there is no portion of vat to be clawed backed.

Your dad could contact revenue vie My enquiry, to cancel vat registration etc or see if there is a local tax advisor that could confirm above based on the full info and deal with revenue on your dad's behalf. Agree a fee, no need for it to be anything outrageous based on the facts.

I deregistered for VAT on residental rental properties a few years ago, once the vat paid was greater than the vat claimed. I did it through the ROS system.

All I did was send them a message through the ROS system saying that I wanted to de register and let me know if I owed them anything. I didn't owe anything and they de registered me.

Since the property is over 20 years old since VAT recovered on acquisition, the CGS life has expired.

The clawback under the Waiver should be easy to calculate if you have the details of the rent charged over the life of the property. I'd be doing a calc in advance of contacting Revenue to satisfy myself.

Sorry missed this.

If 20 years ago, it's under transitional rules, so no CGS adjustments, but clawback still applies with waiver clawback as a credit if applicable. After 20 years, CGS clawback is not applicable.

But point remains:

Revenue will not confirm liabilities have been filed correctly for either CGS or Waiver.

The system is self assessment, Revenue are helpful, as in they will probably tell you CGS adjustments are excluded from transitional properties, if you ask for the information , but not that you have calculated the exclusion correctly, nor confirm the clawback does not apply as 20 years have passed. If you are lucky they might say something like "if this applies", etc. Just my experience from dealing with Revenue 😊

Op Vat3 is your periodical return and Captial goods scheme is the post Jul 2008 method of ensuring cumulatively you are putting the property to the same taxable use basis as the basis the input tax credit was claimed.

Probably worth a fee to have it professionally confirmed that a vat exempt sale or letting has no clawback.