On August 23, 2016 the UK HM Revenue & Customs (HMRC) issued VAT Notice 708: buildings and construction. This notice cancels and replaces Notice 708 (August 2014) and a number of amendments.
The notice discusses a.o. the following topics:
· when building work can be zero-rated or reduced-rated at 5%
· when building materials can be zero-rated or reduced-rated at 5%
· when the sale, or long lease, in a building is zero-rated
· when developers are ‘blocked’ from deducting input tax on goods that are not building materials
· when a builder or developer needs to have a certificate from his customer, confirming that the building concerned is intended to be used for a purpose that attracts the zero or reduced rate
· when a customer can issue that certificate to a builder or developer
· what happens when a certificated building is no longer used for the purpose that attracted the zero rate, the use for that purpose decreases or the building is disposed of
· the special time of supply rules for builders
· when a business, on using its own labour to carry out building work on a building or civil engineering structure that it occupies or uses, must account for a self-supply charge
Click here to be forwarded to VAT Notice 708: buildings and construction, as available on GOV.UK, which will open in a new window.
Copyright – internationaltaxplaza.info
and
Stay informed: Subscribe to International Tax Plaza’s Newsletter! It’s completely FREE OF CHARGE!
