This is a freeview 'At a glance' guide to the VAT treatment of storage costs. 

Since 1 October 2012, the provision of storage facilities is standard rated. This includes self-store and store of both business and personal goods provided that the storage is in a building, unit or enclosed container.  

Conversely, a grant of an interest in land, or a licence to occupy land is generally exempt from VAT.

The effect of the change for storage means that anyone who is letting out surplus space in a property will need to ask their tenants/licensees what they are doing with that space and then apply VAT as necessary.

  • If a landlord is not VAT registered, the value of supplies of storage should be included in turnover calculations in order to determine whether the VAT registration threshold is breached.
  • For those who are Flat Rate accounting for VAT, all rents are added to turnover in making their flat rate calculations for their returns.

Useful guides on this topic

Land & Property: Non-residential
This guide considers the VAT treatment of the supply of non-residential property.

Land & Property VAT
An outline of the VAT treatment of some of the more common supplies of land and property.

External links

VAT information sheet 10/13: provision of storage facilities

Land and property (VAT Notice 742)


Small acorn
If you like our content come and join us.

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad