VAT on barn conversions

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Poodle
Poodle Registered Posts: 711 Epic contributor 🐘
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

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  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    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
    Poodle Registered Posts: 711 Epic contributor 🐘
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    thanks TC,

    I thought that was the case, just wanted to check
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