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Where Taxpayers and Advisers Meet

Property developer – input VAT recovery, furniture etc.

Posts: 431
Joined: Wed Aug 06, 2008 3:35 pm

Property developer – input VAT recovery, furniture etc.

Postby RMC » Sun Mar 03, 2019 4:01 pm

A property developer purchases some land and builds upon it houses intended for re-sale. He considers construction services incl. materials to be VAT zero-rated and accordingly construction companies do not charge VAT. However a contractor supplying carpentry services insists on charging VAT on items falling within VAT Notice 708 art. 13.5.3, viz. arched fitted wardrobes, bathroom cabinets, fitted shelves, matching loose items etc. Presumably the developer can then recover input VAT on that in the usual manner?
Thanks for your considerate opinion(s).

Posts: 4268
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Property developer – input VAT recovery, furniture etc.

Postby pawncob » Tue Mar 12, 2019 1:43 pm

No problem recovering the VAT, it's just "purchase of goods".
With a pinch of salt take what I say, but don't exceed your RDA

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