Any Ex-pats In Thailand Renting Out Homes In The Uk?

[ThaiPauly]

If you still have property in the UK that you rent out, do you pay VAT for the service provided to manage it and for any maintainence work carried out?

I do

But the thing is that when I sold my UK business I did not pay my soliciters ANY VAT because I live overseas, they said I did not have to and in the 5 years since it has never been queried. My managing agents say I am obliged to, but I just don't understand why?

So if any of you out there are not paying it ...how did you go about becoming VAT Exempt?

Many Thanks

TP

[cmsally]

I'm also paying VAT on management services.

I did before fill out a non residency form which means other tax is not deducted at source. Rent comes in minus their fee (& VAT on their fee).

I think it is because their service is based on a fixed property which is located in UK rather than a service to the person who is overseas.

My guess is their is something legal about the service being property based rather than person based. (Just a guess).

Actually never really thought about it - good question.

Offhand I can't remember what the other tax was (income tax??). But I remember being told if you don't fill out the non residency form we will have to deduct xx amount at source; and it was a sizeable portion. I think after that VAT seemed irrelevant !!

Edited June 23, 2009 by cmsally

[samtam]

cmsally - yes I think you're right. It's a service provided in UK, so where you live, (your tax status) is not relevant. Just as you pay VAT on other services, such as restaurant bills etc.