I hope someone can help me please? The Company I work for is renovating a property with the view of renting it out as a holiday home later on. Please could someone help me with the VAT element on the Builders Invoices?
I understand that VAT ends with the consumer, the company I work for. However, the builder completing the work is submitting VAT invoices - how do I show the VAT within Sage? As T1 is the normal 20% which is reclaimable upon the VAT return, do I need to set up a new code with a new description or is there another way of recording this please? I hope that makes sense. :)
It's not un-heard of to claim back VAT for products that are involved in the sale of exempt products/services, so as long as you can claim VAT for renovations then do so as normal.
If they are not then no VAT is reclaimable, as it is only new build and conversions that can be zero rated.
If they are VAT registered then claim vat back as normal. I am guessing that the renovation works will also be capital expenses, rather than revenue expenses, so you might have to post the invoices to a 00XX code rather than a normal expenses code.
