Property remains one of the more complex areas of VAT, where the VAT position can either be standard rated, reduced rated, zero rated or exempt depending on the transaction. The VAT position can also be affected by the use of the property, whether it is commercial or residential and often has significant implications because the values involved can be high. 

This article considers how the option to tax (previously known as an election to waive exemption) for commercial property interacts with all these VAT rules, including some of the common myths around the option to tax.

What is opting to tax?