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New Flats built VAT 0% or 5%

Contractor is arguing 5% but we are saying 0%

My client is building 4 new flats on top of 4 already newly built flats.  Also they are building an new extension around the back of the ground flats

The contractor has said reduce rate of 5% VAT should be charged but I think it is Zero Rated a its still brand new flats and not a conversion in any form.

 

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23rd Sep 2018 12:17

Have you looked at the relevant VAT Notice and legislation? That's where I'd start if I was advising a client.

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23rd Sep 2018 16:48

Yes I have check VAT Notice 708 and still think its under new build hence 0%

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to GlobalTax
23rd Sep 2018 19:01

GlobalTax wrote:

Yes I have check VAT Notice 708 and still think its under new build hence 0%

I like your optimism.

Will you rely on para 3.2.4 for the flats ?

I can't see anything in your very detailed query which would suggest 5% is appropriate for the extension. But tell us more.

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23rd Sep 2018 20:09

I think 0%, but you will need 'chapter and verse' to reassure the contractor.

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to leshoward
24th Sep 2018 12:17

leshoward wrote:

I think 0%, but you will need 'chapter and verse' to reassure the contractor.

I'm thinking 0% for the new flats and 20% for the extension but there's a lot of information open to interpretation here.

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24th Sep 2018 10:24

Does any part of the new flats extend into the pre-existing building?

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