Commentary

V7.370 Construction services—other matters

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.370 Construction services—other matters

Part V7 Tax planning | Commentary

V7.370 Construction services—other matters

The VAT issues involving construction industry supplies are very extensive, and this section has focused on the main practical situations which advisers could be faced with on a day to day basis. A few useful issues to consider are now given to conclude:

  1.  

    •     Design and build supplies – as explained at V7.366 the supply of professional services is always standard rated. However, there may be occasions when a main contractor is engaged to carry out both the design and construction elements of a project. In such cases, the VAT liability of the overall project depends on the liability of the building work. If the building work is zero-rated, the design element will also be zero-rated, which could produce a potential tax saving for the client if he is not in a position to reclaim input tax. The main contractor will be able to reclaim input tax on any fees charged by an architect or surveyor because he is making a zero-rated supply.

  2.  

    •     Authenticated receipts and

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