Commercial property and VAT. Commercial property is normally exempt from VAT (although freehold sales of new commercial buildings do attract VAT). So, for example, a landlord will not charge VAT on the rent — but nor will the landlord be able to recover any VAT paid out on expenses.f you own a commercial property, you are liable for the business rates. If you rent a business property, the terms of your lease or rental agreement should make it clear whether you or your landlord is responsible for paying the business rates. Complications may arise if you use part of your home for business.