New Build Industrial Unit: Vat Or Not?

[ProDave]

I'm pricing for the wiring of two new small industrial units.

Simple question.  Is a new build industrial unit VAT exempt or not?  I know new houses are VAT exempt but I don't know the answer for an industrial unit.

These are in fact going to be used as retail units.

Thanks.

 

[safedepth]

In all honesty Dave any answer on here would be without any value. Ring HMRC and try to get the answer in writing. They will not accept my answer should it get to that point.

 

[ProDave]

I'm not having any dealings with HMRC myself over this.

It's just that I'm not VAT registered.

So if like a new house, it is VAT exempt, I would advise the customer to buy the materials and then do a VAT reclaim at the end of the build. (like you can do for a new build house) and I would supply labour only.

If it is subject to normal VAT then I can supply the materials as they will have been bought VAT paid.

 

[safedepth]

I'm not having any dealings with HMRC myself over this.

It's just that I'm not VAT registered.

So if like a new house, it is VAT exempt, I would advise the customer to buy the materials and then do a VAT reclaim at the end of the build. (like you can do for a new build house) and I would supply labour only.

If it is subject to normal VAT then I can supply the materials as they will have been bought VAT paid.

Fair enough, I can see why you're asking. I would still get an answer from HMRC, it shouldn't take too long and will at least be definite. I know from a barn conversion a couple of years ago that there are a number of variables involved, but couldn't comment on a new build commercial issue.

 

[pewter]

If the builders/buisness is vat reg would it would be worth them getting the materials any way.

When we have done this kind of thing in the past we get the wholesalers to set up an account in there name then we can just go in an get whatever we want.

 

[betty swollocks]

I've done this before and I've made the builder supply everything paying me only labour, builders or anyone vat registered like the fact they can claim the vat back and you know exactly how much your being paid, gone are the days you can make mark up on materials of any real value thanks to every builder having a skrewfax book on the dashboard