This is a freeview 'At a glance' guide to the VAT treatment of storage costs. 

Since 1 October 2012, the provision of storage facilities is standard rated. This includes self-store and store of both business and personal goods provided that the storage is in a building, unit or enclosed container.  

Conversely, a grant of an interest in land, or a licence to occupy land is generally exempt from VAT.

The effect of the change for storage means that anyone who is letting out surplus space in a property will need to ask their tenants/licensees what they are doing with that space and then apply VAT as necessary.

  • If a landlord is not VAT registered, the value of supplies of storage should be included in turnover calculations in order to determine whether the VAT registration threshold is breached.
  • For those who are Flat Rate accounting for VAT, all rents are added to turnover in making their flat rate calculations for their returns.

Useful guides on this topic

Land & Property: Non-residential
This guide considers the VAT treatment of the supply of non-residential property.

Land & Property VAT
An outline of the VAT treatment of some of the more common supplies of land and property.

External links

VAT information sheet 10/13: provision of storage facilities

Land and property (VAT Notice 742)

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