My client wants to buy a property with VAT but he does not want to charge VAT and then recover it. He would like to opt out of VAT and get the VAT back. Is it possible? 

Arthur Weller replies:  

It is not possible. If he wants to recover the VAT paid on the purchase, he will have to register for VAT and opt to VAT on this property, and charge VAT on renting out the property. He can only recover the VAT paid on the purchase if he makes VAT-able (taxable) supplies from this property. Once he opts to VAT on this property, he will have to wait twenty years to revoke it (NB. there is a six-month rule, but it will not help in this scenario). You could try asking the seller if it is twenty years since he opted to VAT. If the answer is ‘yes’, he could revoke it before he sells to your client.