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Hi the company I work for constructs and installs bus shelters, on three occasions we worked on new builds and the customers contracts stated zero vat. A recent vat inspection and the HMRC says they don't agree with this and these should have standard vat rated. Bit confused any help appreciated. Thanks

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chips_at_mattersey
By Les Howard
20th Nov 2014 20:34

Zero rated?

Zero rating of new buildings only applies to specific types of buildings, such as dwellings, 'relevant residential purpose' and 'relevant charitable purpose' buildings. A bus shelter may not be a 'building' at all and, even if it is, will not fall within one of those categories.

But do PM with copy correspondence for further advice.

Thanks (1)
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By qhas
20th Nov 2014 21:34

Zero Rated Vat
Been thru' FTT on similar case . Not a cat's chance in hell of success . Throw in the towel now.

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By LuKosro
22nd Nov 2014 22:17

Nope

Check VAT notice 708 and the VCONST guidance manuals. The main requirements for zero rating new builds are: 

·         on a qualifying new building (“dwellings or group of dwellings”) (as per Paragraph 14.2 of VAT Notice 708) or "for relevant residential purposes" or "for relevant charitable purposes"

·         in the course of construction (as per Paragraph 3.3 of VAT Notice 708)

·         certificate is required if they are the main contractors and the building is classed as “for relevant residential purposes” or “for relevant charitable purposes” (as per Paragraph 14.2 of VAT Notice 708 and Paragraph 17.4 of VAT Notice 708)

·         the services are not specifically excluded from zero rating (as per Paragraph 3.4 of VAT Notice 708)

Don`t think the story that new built bus shelters qualify for zero rating will ever hold water. 

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RLI
By lionofludesch
23rd Nov 2014 09:33

Residential Bus Shelters ?


Unless your customer is providing bus shelters for the homeless, HMRC are right.

As stated above, zero rating is for residential property and a limited number of other buildings.

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By User deleted
23rd Nov 2014 09:41

Basil is right

If the OP isn't referring to bus shelters, why did he mention the fact, but in any event if he wants definitive advice then he needs to provide definitive information.

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