Test yourself Question 1 of 6 Question 1 of 6
In a hall, a landlord lets not only the rooms but also a built-in cold store that belongs to the tenant's operations. How is the rent treated?
wholly exempt, because the cold store is an integral part of the building split: the part for the cold store is taxable as operating equipment wholly taxable, because an operating installation is let with it
Question 2 of 6 Question 2 of 6
Can a landlord opt towards an employee who rents a flat for himself and his family?
yes, if the employee agrees yes, if the rent is above the local level no, because the flat is not let to a business for the purposes of that business
Question 3 of 6 Question 3 of 6
An insurance broker rents a floor in an office building completed in 2015. Why is the option barred?
because the broker is not a business because the broker makes exempt supplies and section 9(2) UStG requires exclusive use for supplies with input tax deduction because office space can never be opted
Question 4 of 6 Question 4 of 6
A commercial building was begun in 1990 and completed in 1992. The tenant is a medical practice. What applies to the option?
it is possible, because section 27(2) no. 3 UStG removes the second hurdle for this building it is barred, because the practice makes exempt supplies it is barred, because the building is too old
Question 5 of 6 Question 5 of 6
How does a landlord exercise the option on an office lease?
by a notarised declaration by a formal application to the tax office before the lease starts by treating the rent as taxable, invoicing it with VAT and reporting it
Question 6 of 6 Question 6 of 6
Why is the option economically neutral for a tenant such as a tax advisory firm?
because the firm can deduct the VAT on the rent as input tax because the landlord bears the VAT out of the net rent because tax firms are exempt from VAT
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