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Should I charge Vat on subcontracted installation?

21/05/2019 08:00:50
Hi

We are subcontracting to a contractor who is constructing a new build.

We are installing various lifts & hoists for disabled people in the building.

The contractor has queried the Vat charge on our invoice and has said because this is a new build no Vat should be charged.

I have looked at Vat notice 708 but it is not very clear.

Can you please advise whether or not we should charge Vat?

Thanks
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Re:Should I charge Vat on subcontracted installation?

21/05/2019 13:34:48
Hi,

If the building is designed as a dwelling then you can zero-rate your supply to the main contractor, as long as you meet the conditions in Section 3.1.2 of VAT Notice 708.

If the building will be used solely for a ‘relevant residential purpose’ or ‘relevant charitable purpose’ you must always standard-rate your supply if you are a sub-contractor working to a main contractor.

You can check the conditions at the following page of our website:

Zero-rating the construction of new buildings

An explanation of the terms ‘designed as a dwelling’, ‘relevant residential purpose’ and ‘relevant charitable purpose’ at:

Dwellings, ‘relevant residential purpose’ and ‘relevant charitable purpose’ - an explanation of terms

There are also reliefs available for disabled and older people so you may wish to discuss this with the VAT Team dealing with this area. You can find their contact details online at:

VAT: reliefs for disabled and older people
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Should I charge Vat on subcontracted installation?

21/05/2019 14:18:35
If it is a complete new build and the contractor has the relevant certificate you do not charge VAT.

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