The deadline for submission of the tax form (TD1220) for opting out from charging VAT on commercial property leases/rental agreements has been further extended from 31st December 2025 to 31 March 2026.
The option not to charge VAT is subject to the following conditions:
- The opt-out form was not submitted in the past;
- VAT has not been charged on the relevant lease; and
- The lessor is compliant with direct tax obligations.
From 1 April 2026 onwards, any new election to opt out will need to be submitted within 30 days from the date the lease/rental agreement is signed.
