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:435
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:5090
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

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

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

Postby RMC » Fri Mar 06, 2020 1:27 pm

VAT cannot be recovered on goods subject to Builders Block!

Eathoset
Posts:1
Joined:Wed Mar 20, 2024 12:24 am

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

Postby Eathoset » Wed Mar 20, 2024 12:25 am

In my opinion, yes, the property developer should be able to recover input VAT on items that fall within VAT Notice 708 art. 13.5.3. Since these items are specifically mentioned as subject to VAT, the developer can include them in their input VAT recovery process as usual.


Return to “Business Tax”