VAT Update: Zero and Reduced Rates for Building and Construction Services Explained

• HMRC has updated Notice 708 regarding buildings and construction
• Changes include when building work and materials can be zero-rated or reduced-rated at 5%
• Information on when the sale or long lease of a building can be zero-rated
• Details on the VAT domestic reverse charge for building and construction services
• Developers are blocked from deducting input tax on goods that are not building materials
• Builders or developers need a certificate from customers confirming the building’s intended use for zero or reduced rate
• Customers can issue certificates to builders or developers
• Rules for when a certificated building is no longer used for its intended purpose
• Special time of supply rules for builders
• Businesses using their own labor for building work must account for a self-supply charge
• Sections 18.1 and 18.2 of the Notice have force of law under The VAT Act 1994, Schedule 8, Group 5, Note 12.

Source: deeksvat.co.uk

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.

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