HMRC’s VAT Notice 708 advises on “How to work out the VAT on building work and materials if you’re a contractor, subcontractor or developer”.
Section 14.7.4 of the notice has been amended (24 November 2022) to show the updated conditions where buildings fall into the category of village halls and similar buildings.
The overall guidance includes the following categories:
- Overview
- VAT liability
- Zero rating the construction of new buildings
- Zero rating the sale of, or long lease in, new buildings
- Zero rating the sale of, or long lease in, non-residential buildings converted to residential use
- Zero rating the conversion of non-residential buildings for relevant housing associations
- Reduced rating the conversion of premises to a different residential use
- Reduced rating the renovation or alteration of empty residential premises
- Transitional historical arrangements
- Zero rating the sale of, or long lease in, substantially reconstructed protected buildings
- Supplies of building materials by contractors
- Developers ― building materials and other goods
- The VAT meaning of ‘building materials’
- An explanation of dwellings, ‘relevant residential purpose’ and ‘relevant charitable purpose’
- Relevant residential purpose accommodation that’s designed as dwellings
- Apportionment for part qualifying buildings
- Certificates for qualifying buildings
- The certificates
- Changing the use of certificated buildings
- Zero rating the development of residential caravan parks
- Place of supply of construction services and working overseas
- Value of supply ― deductions and liquidated damages
- Tax points, authenticated receipts and self-billing
- Tax points ― the special anti-avoidance rule
- Self-supply of construction services
Related content from Claritax Books
Value Added Tax, written by Ciaran McGee MA (Oxon), FCA, CTA, is an extensive volume (over 1,000 pages), written primarily for non-VAT specialist accountants and tax advisers.
