Folks, I am part of a community group that is getting a new building constrcuted at present. 60% of the building is for Community Letting (Charity Registred) and 40% is for Retail. I am aware that i can issue a VAT Exemption Certification to the contractor for the community part of the building as this would be zero rated.
How do i issue the Cert. Will i be able to claim the other vat back on the VAT Return.
My understanding was that you could apply for a certificate for zero rated vat on new build houses and flats. I'm not sure about commercial/charity buildings. I would guess it may be that the community group could get vat registered and theerfore claim back all the vat. I think it would mean you would have to charge vat on the rent of the shops though. I think specialist advice needs to be sought. VAT and buildings can be a nightmare so talk to someone who knows it inside out!
On a different point, it would be worth noting that integral features of the building, e.g. electrics, water systems, heating etc need to be put in the special rate pool for capital allowances (WDA of 10%), but toilets, bathrooms and kitchens can attract AIA and FYA.
And while I think about it if there are energy efficient and environmentally friendly p&m then there is enhanced capital allowances of 100% write down.
I haven't read the full text for offices/ shops but when doing the self build, some items weren't VAT claimable.
Fitted kitchens are but not the fitted white goods Bathroom suite but not fitted units Materials to build a cupboard in a recessed wall but not fitted wardrobes. The list goes on.
There is also the usual VAT invoice criteria and they have to be submitted with the form in the order they are entered on the form. You also have to contend with the fact that many one man band trades people do not understand the system and are reluctant to issue invoices without VAT.
No doubt the same, or similar restrictions also apply to charity premises
It's a minefield Bill, to be honest I thought it was just the contractors part that was potentially zero rated and not the materials...just goes to show you need the advice from a specialist. We are mainly general practioners here and always happy to learn, but as Shaun likes to give out quotes I'll say 'a little knowledge is a dangerous thing' (Alexander Graham Pope...Essay on criticism...I think!)
