Transfer of common areas alone – no requirement for a Capital Goods Scheme adjustment for VAT purposes and no VAT charge
Taxation
07/06/2013
The Revenue has confirmed at a recent Indirect Taxes TALC meeting that, if common areas alone in a development are sold to a management company for a nominal sum (as the costs of the common areas are reflected in the cost of the apartment unit), a Capital Goods Scheme adjustment is not required. On this basis, VAT would not generally be chargeable on the sale of such common areas. Obviously, if the transaction is not a fully straightforward one, VAT advice will be required.