VAT .....Zero rated??

[Evans Electric]

If working on a new build house , which I am, am I correct in assuming that I omit the VAT from my invoice to the builder, as new build is zero rated. ?

 

[batty]

Don't think it matters if you charge VAT he will get it back anyway.

 

[SLIPSHOD & SLAPDASH]

Don't think it matters if you charge VAT he will get it back anyway.

It doesn't work like that unfortunately. They wont pay it back because you should not have charged it in the first place.

Also expect a visit from the VAT man if your inputs & outputs change around due to the zero amounts, they dont like having to pay you back money.

 

[ProDave]

Don't think it matters if you charge VAT he will get it back anyway.

Wrong

Having built my own house and been through the VAT reclaim.

I was able to reclaim the VAT from all the materials I bought.

but I tried to reclaim the VAT that one tradesman charged me for his labour. I was told that he should not have charged the VAT and I should reclaim it from him.

So you should not charge VAT on your labour when working on a new build.

 

[batty]

So you tell the wholesaler not to charge VAt on materials as they are going into a new build?

 

[philbas]

So you tell the wholesaler not to charge VAt on materials as they are going into a new build?

You dont need to.

If the build is 0 rated then you dont charge VAT, the fact that you had to charge it otherwise must mean you are VAT registered. therfore you can claim back the VAT from the supplier

 

[batty]

I know you don't charge VAT on new builds but the builder that built the last three i did said he didn't mind either way if i charged VAT as he gets it back anyway probably wrong but thats how it was. Have you read the link canoeboy linked quite a lot you can't zero rate like carpets and white goods.

 

[NozSpark]

Don't they have to issue you with a certificate or something?

 

[steptoe]

carpets and white goods are hardly part of a new build,

more like a furnished property,

AFAIAC there is a world of difference between buying a house and a 'home'

 

[SLIPSHOD & SLAPDASH]

You dont need to.If the build is 0 rated then you dont charge VAT, the fact that you had to charge it otherwise must mean you are VAT registered. therfore you can claim back the VAT from the supplier

This is incorrect. The suppliers have nothing to do with the build, You still pay suppliers in full. If a job is zero rated then you cant pass it on so the VAT people pay it back to you. You need the planning permission number. Also note there is a difference between zero rated & exempt.

 

[Evans Electric]

Having read the link to HMRC from Boating Billy...(Thanks) it appears that I don't charge the builder VAT , he supplies the Mats so its labour and travelling only .

 

[philbas]

This is incorrect. The suppliers have nothing to do with the build, You still pay suppliers in full. If a job is zero rated then you cant pass it on so the VAT people pay it back to you. You need the planning permission number. Also note there is a difference between zero rated & exempt.

That is what I was trying to say, maybe phrased it badly.

You will have to pay your supplier VAT, he is not doing the build, you are.

You charge VAT at 0%.

You are VAT registered so claim the VAT you paid to supplier back.

If you aren't VAT registered then you would'nt be applying VAT at 0%, and can't claim back the 20% you paid to supplier.

 

[Andy™]

Having read the link to HMRC from Boating Billy...(Thanks) it appears that I don't charge the builder VAT , he supplies the Mats so its labour and travelling only .

but is the subcontractor to charge 0 VAT, or just the contractor?