VAT on barn conversions
Poodle
Registered Posts: 695 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
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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Comments
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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.0
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thanks TC,
I thought that was the case, just wanted to check0
