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VAT & Building a House

  • 31-07-2015 5:58pm
    #1
    Bellmolly1
    Registered Users, Registered Users 2 Posts: 2 ✭


    Hi, I am planning on building a small house on a family site. I have heard that you can claim the VAT back on materials.
    Does anyone know how you do this? I guess I need to register for VAT & do VAT returns...but do I set up a business or how exactly does this work?

    thanks for your help in advance


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    Bellmolly1 wrote: »
    Hi, I am planning on building a small house on a family site. I have heard that you can claim the VAT back on materials.
    Does anyone know how you do this? I guess I need to register for VAT & do VAT returns...but do I set up a business or how exactly does this work?

    thanks for your help in advance

    It doesn't work. If it did everyone would do it, wouldn't they.


  • #3
    BryanF
    Moderators, Home & Garden Moderators Posts: 10,146 Mod ✭✭✭✭BryanF


    http://www.revenue.ie/en/tax/it/reliefs/hri/hri-general-faqs.html

    Not sure it's relevant for new builds?


  • #4
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    You also can't claim the HRI on a new build http://www.revenue.ie/en/tax/it/reliefs/hri/hri-general-faqs.html#section16


  • #5
    BryanF
    Moderators, Home & Garden Moderators Posts: 10,146 Mod ✭✭✭✭BryanF


    1.2.7. Can a Contractor claim the tax credit for works the Contractor does on their own home?

    As a self employed Contractor you cannot pay yourself for works you do on your main home or rental property. However, if you have a limited company and you engage the limited company to carry out the works, provided the works are paid for by you and accounted for by the limited company, the works will qualify and you will be eligible to claim the tax credit against your personal Income Tax.
    .


  • #6
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    This thread has derailed off into a discussion about the HRI scheme.

    The OP asked if there's a way they can somehow make VAT not part of the cost of building their house.

    The answer to that is no, unless you are a builder intending to sell it (a taxable supply), or intending to let it and opting to charge VAT (in which case that VAT becomes a cost to you included in the market rent, as your tenant, a private individual, will not have ability to recover it).

    If it was as simple as registering a pretend business in order to magically not have to pay the VAT, everyone in the country would be doing it.


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