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.
Replies (6)
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Have you looked at the relevant VAT Notice and legislation? That's where I'd start if I was advising a client.
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.
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.