Buildings and construction ― self-supply charge for internal construction projects

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Buildings and construction ― self-supply charge for internal construction projects
  • When does a self-supply charge arise?
  • What are the ‘specified’ services which lead to the charge?
  • How is the labour valued?
  • How is the self-supply charge accounted for?
  • Practical points around the self-supply charge

This guidance note provides details of a self supply VAT charge that can arise where a business uses its internal labour to undertake certain construction works In depth commentary on the legislation can be found in De Voil Indirect Tax Service V3 244 When does a self supply charge arise A self supply charge arises where the following conditions are met a business provides specified construction services the services are provided for the business itself or its VAT group the business uses its own internal labour the open market value of the labour would be at least 100 000 excluding the value of any services which would be zero rated if supplied by a contract builder

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