Update June 26, 2025: Sentences at paragraph 7.6 and 8.4 updated as the original wording was unclear.
Update May 23, 2023: Sections 13.8.1 and 13.9 have been updated to clarify that electrical blinds are not ordinarily incorporated in dwellings.
How to work out the VAT on building work and materials if you’re a contractor, subcontractor or developer.
Contents
- 1. Overview
- 2. VAT liability
- 3. Zero rating the construction of new buildings
- 4. Zero rating the sale of, or long lease in, new buildings
- 5. Zero rating the sale of, or long lease in, non-residential buildings converted to residential use
- 6. Zero rating the conversion of non-residential buildings for relevant housing associations
- 7. Reduced rating the conversion of premises to a different residential use
- 8. Reduced rating the renovation or alteration of empty residential premises
- 9. Transitional historical arrangements
- 10. Zero rating the sale of, or long lease in, substantially reconstructed protected buildings
- 11. Supplies of building materials by contractors
- 12. Developers ― building materials and other goods
- 13. The VAT meaning of ‘building materials’
- 14. An explanation of dwellings, ‘relevant residential purpose’ and ‘relevant charitable purpose’
- 15. Relevant residential purpose accommodation that’s designed as dwellings
- 16. Apportionment for part qualifying buildings
- 17. Certificates for qualifying buildings
- 18. The certificates
- 19. Changing the use of certificated buildings
- 20. Zero rating the development of residential caravan parks
- 21. Place of supply of construction services and working overseas
- 22. Value of supply ― deductions and liquidated damages
- 23. Tax points, authenticated receipts and self-billing
- 24. Tax points ― the special anti-avoidance rule
- 25. Self-supply of construction services
- Your rights and obligations
- Help us improve this notice
- Putting things right
- How HMRC uses your information
