| Commentary

73 Value added tax

| Commentary

73 Value added tax

The VAT treatment of building and engineering contracts follows the general principles of VAT1. Building and engineering contracts usually involve a supply of either goods or services or both2 in the UK3, and if the supply is made by a taxable person in the course or furtherance of a business and is not such a supply as would be treated as exempt, the supply will attract VAT at the standard rate, the reduced rate or is zero rated4.

In practice, the main concern for VAT registered contractors and employers is to determine whether supplies to be made

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