VAT on building materials

[house]

Hi all,

I soon hope to start a direct labour self-build, (mostly due to finanical reasons + i have some experience in the construciton industry)

My query is about VAT on materials,
Can I buy materials through my VAT registered friend? thus eliminating 21% off by bill?
Is there any benefits for him in this?

I will not be paying him for any labour.

Please correct my example below if in correct or what pitfalls exist;
I pay my VAT registered pal €10,000 cash he pays builder providers €12,100 for materials, end of year he claims back the €2100 VAT. Everyone happy!

 

[mathepac]

... Everyone happy!

Well your friend won't be and neither will the taxman.

 

[Sconhome]

Not only are you scamming the country but your friend gets to pay out €2100 for your benefit and only has the opportunity to claim it back at year end.

Somehow I think you are the only one who thinks this is a great idea.