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My client has been served a VAT demand for 18 months of VAT on their rental charge which wasn't charged at the time. The lease is opted. They only have 11% recoverability so this is a real cost to them. The building was purchased from a receiver 18 months ago so the issue arose with the new landlord. Throughout this period the landlord invoiced them without charging any VAT, the invoices were carelessly produced and in some cases zero VAT was applied, others just ignored the VAT. While it doesn't appear that there is any way to say that the landlord ceased his option to tax, is there any mileage in not paying the VAT now on the basis of the incorrect VAT invoices? They were all paid on time. Surely a tenant must have some recourse if a landlord comes back to them looking for VAT after a number of years unexpectedly? Thanks, Ben

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Asked on 28 May 2020 4:14 pm