Share this content
1

Which VAT rate to use

Which VAT rate to use

Didn't find your answer?

Hello

I have a VAT registered client who deals in property development and one of their sites is a commercial property that has been converted to self contained flats. One of their suppliers has supplied and installed a video entry system to the building. The supplier is VAT registered and charged full rate VAT of 20%. My client thinks VAT rate should be 5%.

What is the correct treatment?

And what documentation is needed if reduced rate is to apply.

Regards

David

Replies (1)

Please login or register to join the discussion.

avatar
By rjoconnor81
25th Nov 2015 13:37

In this example the rate of VAT is down to whether the supply is deemed as building materials or other goods.  HMRC include in their list of items excluded from building materials CCTV and also electrical components for garage doors and gates (including remote controls).  I would say that a video entry system is standard rated, and can't be classed as "building materials" which would allow a reduction in the VAT rate.  Also watch that if the client intends to sell the flats the input tax recovery on these items might be blocked.

Thanks (0)
Share this content

Related posts