- HMRC has made amendments to Notice 708 regarding VAT in buildings and construction
- The amendments cover various topics such as zero-rating or reducing VAT on building work and materials
- The notice also includes information on when the sale or long lease of a building is zero-rated
- There is a section on the VAT domestic reverse charge for building and construction services
- Developers are now blocked from deducting input tax on goods that are not building materials
- Builders or developers may need a certificate from their customer confirming the intended use of the building for zero or reduced rates
- Customers can issue this certificate to builders or developers
- The notice also addresses what happens if a certificated building is no longer used for the intended purpose or is disposed of
- There are special time of supply rules for builders
- Businesses using their own labor for building work may need to account for a self-supply charge
- Sections 18.1 and 18.2 of the Notice and the certificates have been updated to have force of law under The VAT Act 1994, Schedule 8, Group 5, Note 12.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
