VAT on Housing Development

C

Coolmain

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Trying to understand VAT as it relates to housing developers..

The Developer has to buy the land, put in the services and build the houses.

When the developer sells the houses, is he liable for 13.5% VAT on the Gross Sales figure or on the Gross Profit figure (Sales minus Development Costs)?
 
VAT on property is very complex.

The developer pays VAT in this example on a newly built house at 13.5% of the sales price. The developer will have claimed back all the VAT on the various inputs.
 
Thanks very much for the information - I guessing it was complex as i couldn't find any straightforward information on the net.

is there an average for how much VAT a housing developer will pay that cannot be reclaimed? Just as a Quantity Surveyor will have an average for build cost per square foot?
 
Not sure what you mean if the developer is building houses for resale than they can claim the inputs that are VATable (except the usual motor vehicles, petrol, food ect).

If you have a detailed costing on the inputs then you can compute the input VAT from that and and then deduct that figure from the output VAT.
 
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