VAT on Building Materials for New Builds in NI

Lemlin

Hi folks,

I've previously stated on here that I bought my windows in NI and did not pay VAT as I was told that certain materials for new builds in NI are not VAT chargeable. I contacted a supplier of engineered wood flooring earlier and they also told me the same re wood flooring i.e. I can buy the goods from them without paying VAT. However, I've contacted three or four suppliers and this is the first supplier to say it to me.

Are they dodgy or are they the first honest supplier I've come across?

I've had a look at this on Google:

http://www.ehow.com/list_6934499_vat-rules-new-builds.html

1. New Builds Qualifying for Zero-Rating
Some new builds of property qualify for VAT, charged at a zero-rate, meaning that the sale of these properties does not attract any VAT at all. HMRC requires that newly-built properties meet specific conditions before they can qualify for the zero-rated VAT. The new build must be a self-contained dwelling. It must be separate from any other buildings, and cannot have any connecting doors to other houses or apartments, and you must be able to sell the property as an individual unit. The newly built property must also have planning consent in place before you start to build it. These requirements mean that if you build a "granny annexe," attached to an existing property, for a client, you must charge your client VAT on the cost of building the granny annexe. VAT must be charged because the granny annexe cannot be sold independently of the property. (Reference 1)

Carlow52

Given that your location on boards is shown as Cavan, I assume that the build you have in question is in the 26 and not in the 6:)

If so, contrary to some opinion, HMRC does not rule okay down here so all the info in the paste is 100% irrelevant.

As has already been stated ad nauseum here the legal position here is that you should pay VAT either here or there.

Buying VAT free up there on the basis that certain materials for new builds in NI are not VAT chargeable is on the basis that the new build in NI.

On the ground in NI it is possible to buy VAT free if you provide a VAT number, again the onus is on you to pay the VAT down here.

The theory is that the company makes a return to HMRC with the data and HMRC shares this with the Rev Comm down here.

Whether this happens or not I don't know but if the day of reckoning ever comes the company whose VAT number is used is liable.

Elsewhere in Europe I believe the setup is that if you sell VAT free on foot of a dicky VAT number and the wheels come off the seller is liable, hence it has been my experience that they validate the VAT number first.

In NI, for 'historical reasons' local customs still apply:)

re you question

Are they dodgy or are they the first honest supplier I've come across?

I would say they are all honest.
Re the first supplier is not wrong either because
1: he might assume a 6 build so okay
2: he might assume you were honest and that you preferred to pay the VAT in 26 rather than the 6 as we need the loot more.

On the subject of honesty, VAT fraud is theft.

muffler

Dear oh dear.

We have been down this road before and you can quote all you want from the UK revenue but that has sweet FA to do with us here.

Give it up or get a different forum as Im not going to allow people to discuss ways of defrauding the tax authorities here. Fraud is a crime...end of.

Locked