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VAT on newbuilds

Is it necessary to pay the VAT on materials and then reclaim or is it possible to register so that materials are supplied at 0%.

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26th Apr 2012 13:25

A little more information please

If you give a little more detail the answer will be more meaningful

For instance, are you in business or is it a self-build? are you doing the building work, if so are you doing the complete build or just part of it,  are you vat registered if not what is your turnover and who are your usual customers/clients, what is it that is being built - residential, commercial, is a conversion or extension

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By honesty
26th Apr 2012 13:29

Builder

The person in question is a builder who is planning to new build dwelling house on a site. He is VAT registered. Although he can opt for monthly returns, it would help his cash flow even more if he could be supplied at 0%.  Thanks.

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26th Apr 2012 13:52

Pay gross and reclaim
In which case he would pay gross for the building materials from builders merchants etc and recover the vat monthly.

If the materials or certain electrical goods are supplied to the builder by a vat registered sub-contractor in the course of the sub-contract work and are goods which are incorporated into the building the subcontractor can supply the labour and materials at zero rate

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By honesty
26th Apr 2012 16:33

Thanks.

Thanks

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