EnglishHindiItalianNepaliPortugueseRomanian

Zero-rating supplies of building materials

Accountants in Longside | Accountants in Rothienorman | Accountants in Cullompton Zero-rating supplies of building materials | Accountants in Otterton | Accountants in Budleigh Salterton | Accountants in Peter Tavy | Accountants in Beeson Accountants in Accrington Accountants in Ormskirk Accountants in Preston Accountants in Leyland | Accountants in Denton | Accountants in Walkden | Accountants in Worsley | Accountants in Westleigh | Accountants in Ebbw Vale | Accountants in Kettleburgh | Accountants in Blackawton | Accountants in East Portlemouth | Accountants in Halberton | Accountants in Gidleigh | Accountants in Instow | Accountants in Rhayader | Accountants in Lapford | Accountants in Manaton | Accountants in Newton St Cyres | Accountants in Blackdown | Accountants in Bloxworth | Accountants in Melbury Osmond | Accountants in Spetisbury | Accountants in Ault Hucknall | Accountants in Elvaston | Accountants in Long Duckmanton

Zero-rating supplies of building materials

The VAT treatment of land and property is one of the most complex areas of the VAT legislation. Under certain situations, supplies of building materials can be zero-rated or reduced-rated at 5% for VAT.

For the supplies of building materials to be zero-rated or reduced-rated, all of the following conditions must be met:

  • the goods must be ‘building materials’
  • they must be supplied along with zero-rated or reduced-rated services
  • those services must include the ‘incorporation’ of the building materials in the building concerned or its site.

For VAT purposes, ‘building materials’ are articles that meet the statutory definition namely the materials:

  • are ‘incorporated’ in the building or its site
  • would ‘ordinarily’ be incorporated by builders in ‘a building of that description’
  • are not explicitly excluded from the definition of ‘building materials’ (such as furniture, gas and electrical appliances, and carpets).

If a builder is working on a zero-rated project, they can still zero-rate the service of incorporating standard-rated goods in the building. But if they are working on a reduced-rated project, they cannot reduced-rate the incorporation of standard-rated goods that are not building materials.

Proud to be featured in

Happy with our services? Please leave us a Google Review. Click here

Google Review Stars