Hi
We have recentlytaken on a new customer who has asked us to amend his invoice on the new build contruction to take off the VAT for the flooring we fitted and for labour. Do we do this and claim back the VAT as the sub contractors or do we charge VAT and he hs to reclaim it.
We have had new build in the past but this has never come up before.
many Thanks
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Replies (2)
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Not much information, I'm afraid!
Rules for new dwellings are different from RRPs and RCPs; and rules pertaining to retrospective adjustments, and sub-contractors also differ.
Or, is it a commercial building, where there services in the course of construction are standard rated?
Agree - not much to go on. But, if the work turns out to be zero rated, the mechanism is to issue a credit note for the VAT and deduct it from next time's output tax.
Or, alternatively, a credit note to cancel the standard rated invoice in full and a new invoice for the zero rated. I prefer this option myself.
If you'd like to share more detailed information - such as whether the property is domestic or commercial and some description of the flooring work - maybe the answers would be more definitive.
