List of available VAT zero rated products with new build.

[Anonymous]

Hi,

I have done some pretty decent research on the HMRC website with my query.

My company manufacture , sell , install and maintain home lifts. I have already sought professional advice in regards to zero rating our product for disabled people.

My query is about non disabled people – but in a new build situation.

There is a lot of info available about “materials and “works” but not a lot actual items or products. With the relatively small amount of info available on items or products my companies products do not fall under any reasonable “items that can be zero rated ” and items ” that cannot be zero rated”

and i quote form the site.

Zero-rating building materials

To be zero-rated, the building materials must meet all of the following conditions:

– you need tools to fix or remove them
– they’re things that are normally included in a new house or flat – like bathroom taps, kitchen sinks, windows, toilets and shower units
– they’re not finished or prefabricated furniture, or materials to make fitted furniture – but kitchen furniture is allowable
– they aren’t gas or electrical appliances – but heating and hot water appliances, environmental systems, safety and security systems and some other appliances are allowed
they aren’t carpets or carpeting material – but wood or laminate flooring and linoleum are allowed

Items that can’t be zero-rated

If you supply materials that don’t meet the conditions listed above then you’ll need to standard-rate them. These include :

-cookers – including split-level cookers – unless they’re also heating or water-heating appliances
-white goods like dishwashers, fridges, freezers, washing machines and tumble dryers – even if they’re built-in
-carpets, carpet tiles and underlay
-wall units like bathroom cabinets
-wardrobes, unless they’re very basic and may then qualify for zero-rating

To make matters more complicated HMRC go on to say that “It is not possible to produce an exhaustive list of services that are closely connected to the construction of the building, and each case not included above must be looked at on its own merits.”

What should i do?

Thank you

[Marie Stein]

Hi Ifau4704

Unfortunately there is no definitive list of what is and what isn’t zero-rated. It’s up to the taxpayer (ie the VAT registered business) to work it out for themselves.

Whar HMRC do in VAT Notice 708 is to explain what the legislation says (ie “materials ordinarily installed”) and give a list of the main items that that they believe this covers. Bear in mind that this is only their interpretation of the legislation and it can be challenged by VAT registered businesses. Often tax consultants such as myself or other advisors can find precedents in caselaw (ie when the business has appealed against an HMRC decision to the Tribunal) that HMRC has to accept.

However, if you want to be certain whether or not HMRC would agree that you can treat specific items as zero-rated, you’d have to write to HMRC for a ruling on the subject.

You don’t actually say in your query what items you are confused about, so I can’t help in any detailed respect. You might find some helpful information in the HMRC staff manual (which is on the HMRC website) on the subject which is here http://tinyurl.com/yjar98u. (You have to download the document). The manuals are more detailed than VAT Notice 708 and section 14 deals with the issue of “builders materials” in much more detail, so hopefully you’ll find the answer there.

If you’re still stuck, I’d be happy to help through my formal consultancy service – drop me an email using teh contact form.

Marie

[Author]

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