This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Property developer – input VAT recovery, furniture etc.

RMC
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).

pawncob
Posts: 4248
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


Return to “Business Tax”