If it is for a private dwelling, and a private individual, then they can produce a zero rated invoice.
Their client can claim back VAT on materials they buy directly by completing a form but they cannot claim back VAT from a contractor (including the materials). The contractor should zero rate applicable labour and materials instead.
Note that there are some items in a new build that are not zero rated. Consruction of swimming pools, built in wardrobes (except between a recess), Some white goods etc.
Say a company does work (mostly labour) on a new build. Should they invoice the person as normal including VAT and it is up that person to reclaim the VAT. Or do they issue an invoice with VAT at the zero rate? Do they need any certificate from the owner of the property if is is to be a zero rated invoice?
I'll need to go to HMRC for further info - I just thought I'd ask this question first in the hope of saving some time.
__________________
Never buy black socks from a normal shop. They shaft you every time.
I have a subby who has done new build in the past, and hes always invoiced it at zero rate, this was for a private individual. It brought down his VAT bill that quarter by quite alot!
please could you clarify your post as I don't understand it's meaning.
many thanks,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Back to this query - I was reading through the VAT notes and it mentions needing to hold a certificate if you want to zero rate the invoice. So I've asked the person whose property it is if they have any certificate from HMRC to say the work should be zero rated. They haven't a clue what I'm talking about. With the other contractors they have simply given them a copy of the building warrant and that was enough for them to zero rate.
An alternative reading of the notes is the supplier is the one that needs a VAT certificate - but them I'm thinking that what difference would that make. Someone that isn't registered for VAT isn't going to be adding on VAT anyway. I suppose a non VAT registered contractor will be including the VAT they have been charged from their own suppliers in the overall cost.
Anyone shine any more light on this?
__________________
Never buy black socks from a normal shop. They shaft you every time.
