> For the complete documentation index, see [llms.txt](https://help.immodio.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.immodio.app/en/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/vertragsart/gewerbemietvertrag.md).

# Commercial lease agreement

This page explains what a commercial lease agreement is, when it is used and how you can manage such tenancies in Immodio.

<figure><img src="https://152064692-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMmjaQ7ApHsdO9GrxyEiQ%2Fuploads%2Fgit-blob-4511000c13bdf6c1babdd3a0b76f3c366fbe98b0%2Fimage%20(356).png?alt=media" alt=""><figcaption></figcaption></figure>

You are the owner or the owner's representative of the unit and let it to one or more tenants for commercial purposes.

The commercial lease agreement is suitable for letting units that are used not for residential purposes but for business or professional activities.

Use a commercial lease agreement in the following cases:

* letting office space
* letting a practice or law firm
* letting a shop
* letting a workshop
* letting storage or commercial space

Unlike a residential rental agreement, the focus here is on business use of the premises.

{% hint style="warning" %}
In Immodio, commercial tenancies can currently only be created as an ["Existing tenancy"](/en/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/neues-mietverhaltnis-bestehendes-mietverhaltnis.md#adding-an-existing-tenancy). Automatic generation of commercial lease agreements is not possible.

In principle, all notes and information in Immodio and in this help centre relate to residential tenancies and expressly **not** to commercial tenancies. Immodio generally recommends always consulting a suitable expert, in particular a tax advisor or lawyer, in individual cases.
{% endhint %}

### Particularities of commercial lease agreements

Commercial lease agreements are generally not subject to the special protective provisions of residential tenancy law. Many contractual terms can be agreed individually, in particular:

* contract term and extension options
* notice periods
* rent adjustment clauses (for example value protection clauses)
* arrangements on service charges
* opting for VAT

Because of this freedom of arrangement, commercial lease agreements are often more complex and considerably more individual than residential rental agreements.

### Creating a commercial tenancy

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### Add an existing tenancy

To create a commercial tenancy, first click "Add existing tenancy" when creating the tenancy. Here you can add tenancies with **your own rental agreement**.

<figure><img src="https://152064692-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMmjaQ7ApHsdO9GrxyEiQ%2Fuploads%2Fgit-blob-036bbc0f57d6aef1fe1bd7facf68426a739bf9a2%2Fimage%20(802).png?alt=media" alt=""><figcaption></figcaption></figure>
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### Select the contract type

Now select the option "**Commercial lease agreement**" when choosing the contract type.

<figure><img src="https://152064692-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMmjaQ7ApHsdO9GrxyEiQ%2Fuploads%2Fgit-blob-28401c187d57d5e0b6a723dc0e89a0751365222e%2Fimage%20(803).png?alt=media" alt=""><figcaption></figcaption></figure>
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### Recording VAT correctly in Immodio

When creating an [existing tenancy](/en/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/neues-mietverhaltnis-bestehendes-mietverhaltnis.md#adding-an-existing-tenancy) as a commercial tenancy, you can state VAT accordingly in Immodio.

For it to be represented correctly, proceed as follows:

* In the [**"Rent adjustment"**](/en/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/mietanpassung.md) and [**"Operating costs"**](/en/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/betriebskosten.md) steps, enter the net amounts.
* In the [**"Rent"**](/en/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/miete.md) step you can then record the applicable VAT rate.

<figure><img src="https://152064692-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMmjaQ7ApHsdO9GrxyEiQ%2Fuploads%2Fgit-blob-ab5aa2be9ee27737d0cec91a1eabec9c37e98c05%2Fimage%20(201).png?alt=media" alt=""><figcaption></figcaption></figure>

Immodio then calculates the VAT automatically and states the taxation correctly. This is particularly important for the proper posting of rent receipts in the context of accounting and rent receipt monitoring.
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### The VAT option for commercial lease agreements

In principle, letting and leasing land is exempt from VAT under Section 4 no. 12a of the German VAT Act. For commercial tenancies, however, it is possible to waive this exemption voluntarily under Section 9 of the German VAT Act and opt for VAT. The landlord can then waive the exemption if the tenant uses the rented premises for transactions that do not exclude input tax deduction.

The VAT option is **only permissible** if the tenant uses the premises predominantly for services subject to VAT.

The option is **not** permissible, for example, for:

* doctors
* dentists
* physiotherapists

#### What does the VAT option mean?

If you opt for VAT:

* the rent is charged plus statutory VAT,
* you pay the VAT to the tax office and
* in return you are entitled to deduct input tax

This means you can claim the VAT contained in incoming invoices, for example for construction, renovation or maintenance work, as input tax and have it refunded by the tax office.

{% hint style="danger" %}
The decision to opt for VAT has long-term tax and legal consequences. This decision should therefore always be taken in consultation with a tax advisor and a legal advisor.
{% endhint %}