First I've heard of it if they are. I don't follow this part either:



If the builder is VAT-registered, surely he is required by law to charge VAT on all applicable services?

If you are building a new house you can claim back the VAT when it's finished.

I think you can only claim back VAT on materials and non VAT registered contracts (roughly speaking - it's a long complicated list of rules and exceptions of course) - VAT registered builders etc should charge VAT at the appropriate rate - i.e. zero for new dwellings. There have been cases of self builders paying the VAT to a builder and finding that they can't reclaim it from Customs and Excise under Notice 431 (was 719) and have to go begging back to the builder to try and get it back.

- Andy.

As I have been looking in to self build for a while, the Vat has cropped up now as far as I understand all vat on materials used for the construction forming part of the permanent dwelling may be claimed (I.e vat on carpets is not claimable but floor tiles are).

As Andy pointed out vat registered companies supplying services must invoice at 0% vat there are exclusions but generally if it is a new build or a conversion which is providing a dwelling where one did not exist prior then it will be eligible for vat refund.

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Regards

Martyn.

Only a mediocre person is always at their best



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