Property Management Companies - Do you have a tenant with VAT 13B authorisation?

Service charge invoice and balancing statement for tenant who hold a valid VAT 13B authorisation

VAT 13B authorisation is issued by Revenue allowing certain taxpayers who derive at least 75% of their turnover from exports of goods to receive most goods and services from suppliers at the 0% VAT rate (See s56 VAT Consolidation Act 2010).

When a commercial management company who has registered for VAT receives a copy of a VAT 13B authorisation from a tenant, the management company should, before applying the zero rate of VAT, ensure that the authorisation is still valid (based on the date stated on the certificate) and must quote the authorisation number on the service charge invoice.

When raising year end balancing statement, the VAT portion of the balancing charges should be treated the same way as to a void unit. The VAT can be claimed back by the owner of the “void unit”.  If the authorisation has expired, the management company is obliged to charge VAT on its services as normal. Please contact OSK for all other scenarios relating to accounting treatments of VAT 13B tenants.

Sheldon Zhang is Manager - OSK Audit. OSK are one of Ireland’s leading providers of property management audit services to commercial, industrial and residential property management companies. 

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