VAT on barn conversions

Poodle

Hi,

An area that I always struggle with.

If a client engages a contractor to convert a barn into living accommodation and the contractor engages a sub contractor, Both contractor and sub contractor are registered for VAT. Does the sub contractor invoice the contractor at standard rate VAT or reduced rate 5%?

If at the reduced rate does the subcontractor have to hold a certificate in his records for this?

Thanks

T.C.

The subbie would invoice the contractor at standard rate. The contractor would invoice the customer at 0%, as conversions are zero rated. Hope that helps.

Poodle

thanks TC,

I thought that was the case, just wanted to check