Input tax ― building materials and the builder’s block

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note focuses on the VAT treatment of building materials and when VAT recovery on certain items is blocked from recovery.

For in-depth discussion of the legislation and case law in relation to building materials, see De Voil Indirect Tax Service V4.242 and for the input tax block, see De Voil Indirect Tax Service V3.444.

For an overview of input tax generally, please refer to the Input tax ― overview guidance note.

When is VAT recovery on goods incorporated into a building blocked?

VAT on costs incurred for the purpose of making a taxable supply, including a zero-rated supply, can usually be recovered ― see the Input tax ― conditions for recovering VAT guidance note. There is, however, a specific block, sometimes referred to as the builder’s block, on recovery of VAT where all of the following conditions apply:

•
the VAT relates to goods that are not building materials for VAT purposes ― see the ‘What are building materials for VAT purposes?’ section of this guidance note

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Value Added Tax

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more

Value Added Tax

Holding companies ― VAT status of activities

Holding companies ― VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:•when a holding company is or is not in business•if a holding company is in business, whether its activities are exempt or taxableThe

14 Jul 2020 17:13 | Produced by Tolley Read more

UU��ֱ��