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ESSEX COUNTY COUNCIL VAT MANUAL Updated Sept 2015. (VAT liabilities for Local Authority Exempt supplies subject to the option to tax, Business, SR.When we originally purchased our home, we disapplied the option to tax that was on Will we now have to pay retrospective VAT on the property/land to the Public Notice 700 and VAT Manuals - A to Z. ordinarily be standard-rated and properties subject to an option to tax, when these form part of a. send VAT/Tax updates instead of filing a manual return on HMRC website. An option to tax may also not apply where the tenant/hirer.