Landlord charging the tenant a fixed fee for electricity

Question

1. There are three prepaid meters for electricity, installed on a property, the administration cost is for the landlords account.

Must the VAT cost also be carried by the landlord on the three meters?

2. A landlord charges seperate for the electricity for example rental is R6000 per month and he charges an average R1500 for electricity some months the electricity bill comes to a lower fee some months especially in winter the charges are far higher then R1500.

There are three houses on one property, one of the houses the landlord uses for himself. The electricity bill comes out on an average R5000 to R5500 per month. There is only one meter on the property. How does one calculate what each house is using as there is no way to find out what the exact charges are for each house. According to the shariah is this acceptable?

Mufti Zakaria Makada · Accepted Answer

1. Since each tenant is paying for his own electricity consumption, the landlord cannot charge him the vat or any part of the vat which the government is charging the landlord.

2. In the case where there is only one meter and the landlord charges the tenants a separate fixed fee for the electricity which he is providing them, then in this case, it is permissible for the landlord to charge them a higher or lower fee than what the municipality is charging him. If he wishes, he can also include in the electricity fee part of the vat costs.

And Allah Ta'ala (الله تعالى) knows best.

Question

Answer

Related fatawa