VAT practicalities of joint developments of land

HMRC has recently updated its guidance on the VAT registration requirements for joint owners and developers of land. This article explores some of the practical VAT registration issues of jointly developing land. It attempts to summarise some of the contractual arrangements that could be entered into by developers where more than one party is involved, and what that means from a VAT perspective. Issues that can arise include who is the taxable person for VAT registration purposes, what services are being supplied by which party, and who can recover input tax. Carefully reviewing and understanding contracts is crucial.