VAT- New build

[Chopper1971]

Hi,

We received a bank form for a self build and the VAT amount they have is 21%. Is that an error, we had it down that VAT on a self build is 13.5%.

Appreciate any observations you have.

Thanks,

Brian

 

[bertie1]

Firstly the rate of vat is 23% on purchases . Subcontractors supplying & fitting materials will be at 13% , as it is a self build you will be doing a lot of the purchasing directly your self , the vat content on that stuff will be 23%

 

[Clarelassie]

Some contractors will purchase the goods for you and then only charge you the lower rate of vat - but revenue are monitoring for this so be aware that you should be paying the higher rate on all goods and materials and the lower rate only on labour.

 

[mandelbrot]

Some contractors will purchase the goods for you and then only charge you the lower rate of vat - but revenue are monitoring for this so be aware that you should be paying the higher rate on all goods and materials and the lower rate only on labour.

It's up to the contractor to charge the appropriate rate of VAT. If the contractor supplies both materials & labour the two thirds rule applies.