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Selfbuild - VAT on Materials

  • 05-01-2018 09:26AM
    #1
    Registered Users, Registered Users 2 Posts: 1


    Hi all,

    I will be starting a selfbuild project later this year hopefully and i want to know would i be best off letting the contractors buy materials (ie Blocklayer buy blocks, carpenters buy timber etc).

    My understanding is that they will be able to claim back VAT & I would not, hence they can buy materials cheaper? Am i correct in saying this?


Comments

  • Registered Users, Registered Users 2 Posts: 738 ✭✭✭Gaillimh1976


    JC1990 wrote: »
    Hi all,

    I will be starting a selfbuild project later this year hopefully and i want to know would i be best off letting the contractors buy materials (ie Blocklayer buy blocks, carpenters buy timber etc).

    My understanding is that they will be able to claim back VAT & I would not, hence they can buy materials cheaper? Am i correct in saying this?

    Yes but they will have to charge you VAT when they sell them on to you


  • Registered Users, Registered Users 2 Posts: 9,760 ✭✭✭Effects


    They will have to charge you vat on them though. But it'll be 13.5% as it will be vat for services as well.


  • Registered Users, Registered Users 2 Posts: 7,678 ✭✭✭the_pen_turner


    don't forget the 2 /3 rule where they will have to charge 23% vat if the materials are over 2/3rds of the job cost


    also trades will buy them cheaper , doesn't mean they will sell them to you at that price.


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


    also trades will buy them cheaper , doesn't mean they will sell them to you at that price.

    Nor should they. Some one needs to paid for dealing with the hardware suppiler and minding the materials on site.


  • Registered Users, Registered Users 2 Posts: 7,678 ✭✭✭the_pen_turner


    BryanF wrote: »
    Nor should they. Some one needs to paid for dealing with the hardware suppiler and minding the materials on site.

    I agree 100% but didn't want to say that and back the issue about that.

    unfortunately a lot of customers think that they are entitled to the materials at cost price to the tradesman including any discounts they may have


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


    I agree 100% but didn't want to say that and back the issue about that.

    unfortunately a lot of customers think that they are entitled to the materials at cost price to the tradesman including any discounts they may have

    And then the builder breaks something while installing and has no meat in the materials bill to cover the cost.

    Edit: there is really a lot to this topic, how about warranties for example.


  • Registered Users, Registered Users 2 Posts: 8,565 ✭✭✭K.Flyer


    JC1990 wrote: »
    Hi all,

    I will be starting a selfbuild project later this year hopefully and i want to know would i be best off letting the contractors buy materials (ie Blocklayer buy blocks, carpenters buy timber etc).

    My understanding is that they will be able to claim back VAT & I would not, hence they can buy materials cheaper? Am i correct in saying this?

    You will be better off letting the builder deal with materials etc.
    You are an unknown to the supplier and its a one off, so he is not going to give you much in the way of discounts as compared to his long term high volume purchasing customers.
    Another reason would be that you then need to order and ensure deliveries and quantities are on time, again, priority will go to their long termers.
    If you are in work and there is an issue with a delivery, are you in a position to drop everything and go sort it out or source elsewhere straight away to keep things moving?
    Let the builder deal with it, he will be in a better position to keep it all running smoothly, it's what he does all the time.


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