Supplies liable to VAT at the standard rate

Produced by Tolley

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

  • Supplies liable to VAT at the standard rate
  • Sale of new and uncompleted non-qualifying buildings and civil engineering works
  • Storing goods
  • Granting sporting rights
  • Still water fishing
  • VAT treatment
  • Rod licences
  • Shooting rights
  • Shooting in hand
  • Shooting syndicates
  • More...

Supplies liable to VAT at the standard rate

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

It is important to recognise that many transactions involving supplies of land and property are still liable to VAT at the standard rate. This guidance note provides an overview of the most common situations where VAT should be charged on the supply made.

Sale of new and uncompleted non-qualifying buildings and civil engineering works

The sale of a building or civil engineering work will be standard-rated if:

  1. it is new

  2. it is partly completed

and it is not:

  1. designed as a 'dwelling'

  2. designed as a number of dwellings

  3. intended for use solely for a relevant residential purpose

  4. intended for use solely for a relevant charitable purpose

VATA 1994, Sch 9, Group 1; VATLP08000

The sale of a new building as a ‘dwelling’ or a number of dwellings or for a ‘relevant residential purpose’ or ‘relevant charitable purpose’ is zero-rated, if the person who constructed the building is selling it.

Please see the following examples of supplies of new buildings:

Example 1

Example 2

This means that the freehold sale of new or partly completed office blocks, factories, warehouses and industrial units would all be standard-rated.

A building will be treated as 'new' for the first three years from the earlier of:

  1. the date that the certificate of practical completion is issued

  2. the date that the building is occupied

Therefore, it is not just the first sale of the building that could be liable to VAT as a ‘new’ building. If a commercial building is sold several times within its first three

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