Payment of VAT on rent for a commercial property
November 3, 2011 | 30,00 EUR | answered by StB Manuela Ponikwar
Dear Sir or Madam,
the situation and the question are attached.
As I was a tax advisor myself, you can speak with me as a colleague and come directly to the solution.
Thank you for your prompt assistance.
Kind regards
Dear colleague,
According to § 9 para. 1 UStG, opting for tax liability in rental transactions can only be done when the turnover is carried out to another entrepreneur for their business.
With a prayer house as a non-profit association, you are essentially pursuing ideal purposes and thus clearly qualify as non-entrepreneurial (BMF letter of 27.8.1990). Therefore, there is no possibility for the landlord to opt for VAT.
The delimitation for your entrepreneurial area and a partial option should be considered if it is worth the 10%. Are there individual rooms that may only be used entrepreneurially? Feel free to come to me if you have any further questions.
By the way, the option is exercised separately for each rental relationship ("individual option", UStAE to §9, 9.1 sentence 2), so it is irrelevant how previous rental relationships were handled.
This way you have tax-exempt rental secured for yourself. Of course, this does not help your landlord now.
So it would be worth considering an intermediate rental relationship for him at this point. However, this only works outside the scope of §9 para. 2 UStG.
According to the transitional provision of §27 para. 2 UStG, §9 para. 2 UStG does not apply if the building constructed on the property serves or is intended to serve non-entrepreneurial purposes and was completed before 1.1.1986, and if construction of the building began before 1.6.1984.
If the building can be classified temporally here, the application of §9 para. 2 UStG is therefore waived and there is the possibility of an intermediate rental arrangement.
However, your landlord should urgently consult a professional colleague for this.
I hope I could help you with this.
Best regards,
Manuela Ponikwar
Tax consultant
www.ponikwar.de
