Leaseback and VAT on rental income?

[M.G.]

Hello,

A few years ago we purchased a property

through the French leaseback scheme. At the time we were "signed up" with an

accountant who now takes care of completing the

tax returns. During the first couple of years, we were to too busy concentrating

on the tax returns to notice anything else. I have now checked through things

and have realised that there are two sets of accounts, one for the French income

tax return (BIC?) and a second for VAT (CA12).

 

It is this second item that

I do not understand. Basically we have to pay VAT on our rental income. Why? I

have tried asking the accountant, but he says that its because "of your

activity of hirer non professional of a furnished rent.". None of this was

mentioned when we purchased the apartment and I cannot find any solid references

to this type tax in respect of leaseback properties.

 

Can anyone help? Is this

just a normal part of the Leaseback scheme and that we were not paying enough

attention at the time of purchase? Have we inadvertently indicated to the

accountant that we are some sort of business?

Thanks Mark