VAT for most work on houses and flats by builders and similar trades like plumbers, plasterers and carpenters is charged at the standard rate of 20% - but there are some exceptions.
You can find out more via the links below.
As long as the conditions in Sec 8 of Public Notice 708 are met then 5% reduced rate VAT should be charged rather than 20% standard rate on any works completed by any VAT registered trader working on the project.
Please see the following link…
VAT Notice 708
We will be quoting a customer to install carpets and vinyl flooring at their new build property.
As construction labour is subject to 0% VAT on a new-build will this is extend down to us as flooring installers? Our business is VAT registered currently. Would carpet and flooring be considered 'in the course of construction?'
"The installation of some flooring materials can be zero-rated during the course of construction of a new build residential dwelling, but carpets are not considered building materials for this relief"
Sec 13 of Public Notice 708 defines 'building materials' for this purpose;
Sec: 13.7 Carpets
Carpets, carpet tiles and underlay are not building materials for VAT purposes. Other forms of flooring or floor covering, such as linoleum, ceramic tiles, parquet and wooden floor systems are building materials.
We have a mixed development where 50% of the development is for commercial use and 50 % is intended for residential.We are charging 20% vat on the commercial and 0 % on the residential which basically equates to 10% overall.Is this correct
Hi, we have an upcoming project carrying out building work on a barn conversion.
Should we charge our client vat at at the usual rate of 20% or at the reduced rate of 5%?
And is there any form of paperwork we will require from the client ie vat number/cerificates/planning applications?
If you meet certain conditions, work carried out on a Barn conversion can be charged at the reduced rate of VAT 5%, rather than the standard rate 20%.
Below is a link to the relevant section in our VAT Notice 708 on Construction for this type of project. A certificate is only required when working on a conversion of a building that will be used for a ‘relevant residential purpose’ or a ‘relevant charitable purpose’.
It will be a 'single household dwelling' and a certificate will not be required - is it correct that they will need to give me a copy of the planning application for our records and do i need a VAT number from them?
It is wise to obtain and hold in your own internal VAT records any documentation/evidence that fully supports your decision to charge the reduced rate of VAT, so that it will be very clear to our Assurance Officers if they decide to visit the business at any point.
For example, a copy of any statutory planning consent and statutory building control approval etc.
We are a small building company about to quote for building works on the following conversion: the property was one house originally then converted to two flats now the current owner has planning permission to convert the two flats back to one main house (1 dwelling). Does this qualify for the reduced vat rate of 5%?
If the 5% does apply would it be enough to hold a copy of the planning permission and the build plans to prove our decision to apply the reduced rate?
A quick query from the public notice 708, section 7.6 - if we provide landscaping as part of the project am I right in thinking we have to invoice that separately at the standard rate of 20%?
From the information given this would be a qualifying conversion, as the premises will contain a lower number (but not less than one) of ‘single household dwellings’ – see paragraph 7.3 of VAT Notice 708. As long as you also meet the other conditions in Section 7.1.2 then the conversion work will be reduced rated at 5% VAT. As you suggest, we recommend that you keep a copy of the planning permission and building plans with your records. Any landscaping services would be standard rated at 20% VAT. You can issue a single invoice for all your services, as long as the invoice shows the rate of VAT charged for each service. You can find more information on issuing VAT invoices, and the information they must show, at the following page of our website:
VAT Notice 700 sec16