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Where Taxpayers and Advisers Meet

VAT exemption for flooring in our new build

SaraM
Posts:1
Joined:Fri Jan 20, 2017 8:37 pm
VAT exemption for flooring in our new build

Postby SaraM » Fri Jan 20, 2017 8:51 pm

Dear All,
We are in the process to complete the purchase of a Charles Church house. This house will come without flooring. The flooring was not included in the price and therefore we decided to do it ourself following completion. It will be a mixture of wooden floor and tiles.
The wooden floor company has quoted us with a price not including VAT as it is a new build. They will provide and fit the wood.
We have encountered some problems with the tiles instead as the companies we have contacted sell the tiles and they need to charge VAT and then have advised us with the name of some tilers. When we enquired about the VAT they told us that we can claim it back but I cannot find any form for it apart the one for DIY builders and we are not. Can you please advice us on this topic?
First of all: 1- are we actually eligible to VAT exemption? 2-if so how do we claim for it?
Thanks for your advice!

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT exemption for flooring in our new build

Postby les35 » Mon Jan 23, 2017 9:33 am

Supplies in the course of construction of a new house are zero rated (not exempt). There are a number of specific points to note:
- supply of tiles only are goods, and therefore fall outside zero rating;
- if you buy goods only, you may be able to use the DIY scheme, although HMRC may query why you are not claiming for other goods;
- zero rating includes supply and incorporation of goods into your property;
- if you have already occupied the house, then zero rating is no longer available, as further works are supplies in the course of alteration or repiar of an existing dwelling.

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: VAT exemption for flooring in our new build

Postby section 44 » Tue Jan 24, 2017 10:01 am

if you buy goods only, you may be able to use the DIY scheme
Provided that the construction of the house has not already been completed. Would Charles Church sell you an uncompleted house?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: VAT exemption for flooring in our new build

Postby pawncob » Tue Jan 24, 2017 9:39 pm

What! CC sell an incomplete house? In my experience they have so much "snagging" that they're all incomplete.
With a pinch of salt take what I say, but don't exceed your RDA

davebrownvat
Posts:60
Joined:Mon Jul 20, 2009 4:37 pm

Re: VAT exemption for flooring in our new build

Postby davebrownvat » Wed Jan 25, 2017 4:03 pm

Completion is defined thus by HMRC:

"Completion’ takes place at a given moment in time. That point in time is determined by weighing up the relevant factors of the project, such as:

* when a Certificate of Completion is issued
* the accordance to approved plans and specifications
* the scope of the planning consent and variations to it
* whether the building is habitable or fit for purpose"

Anything after completion cannot be zero rated, nor can it be claimed on a DIY claim

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: VAT exemption for flooring in our new build

Postby section 44 » Thu Jan 26, 2017 11:08 am

Completion is defined thus by HMRC:
Is that a definition?
determined by weighing up the relevant factors

davebrownvat
Posts:60
Joined:Mon Jul 20, 2009 4:37 pm

Re: VAT exemption for flooring in our new build

Postby davebrownvat » Mon Jul 17, 2017 11:21 am

I don't know, I'm not a linguist, by profession. If I have used the wrong word, I apologise.


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