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Hi, I have a question which is currently in debated between us (the vendors accountants) and the purchaser's solicitor. Our client purchased a hotel and adjoining bar on 30th October 2005 on which VAT of €384,750 was charged to my client. My client claimed the VAT in Oct-Dec 2005 VAT period. in June 2006, my client renovated the property totaling €150,000 plus VAT. However, no VAT was claimed on the renovations. A Section 4A VAT Act 1972 was approved by revenue for a 35 year lease of the property, exempting my client from charging VAT on the rentals. My client is now selling the property. My understanding is that VAT is chargeable on the sale as they claimed VAT on the purchase. However, the purchaser's solicitor is stating that the transaction should not be vatable under Section 93 (2)(a)(i) VATCA 2010. This section is very unclear to me and I would be grateful if you could advise me on the situation? I look forward to hearing from you. Helen

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Asked on 26 July 2019 2:47 pm
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