If I am charged interest on an overdue lease payment, would it be correct to have to pay VAT on the interest?
VAT
Apr 22, 2006
4 Replies
No.
What if it were a vattable building?
Lease on a VATable business premises? Lease on a "lease hire" of equipment?
Interest charged by a bank is zero rated, but it is easy to see how an additional payment on a lease might become part of the lease charge itself.
Irrelevant. Interest is not vattable. Of course if it's not really interest but an extra charge, or even an "admin" charge, that would be a different matter.
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required