Vat treatment of conservatories

paulr

Good morning,
I have a Ltd co. client that installs windows and doors;
they wish to install conservatories to both old/existing properties and new build properties;
I have searched for some information but am unsure of the VAT treatment;
my own view is that a conservatory attached to a new build house would be deemed zero rated
and a conservatory attached to an existing building would be deemed to be standard rated;
any thoughts/answers would be appreciated,
paulr.

JodieR

A conservatory to an existing house will be standard rated.
If it's a new-build then whoever's building the house won't have to pay the VAT on a conservatory but I don't know whether your client will be able to zero-rate their invoice or whether it's up to the main contractor/homeowner to reclaim the VAT paid. I used to work for a man who built houses & he paid VAT on everything he bought and then claimed it back quarterly, I don't remember subbies or other suppliers zero rating their invoices for us. It may be possible though!

Jodie

T.C.

Contractors can zero rate their invoices so long as they see proof from the 'customer' that the property is subject to zero rated tax. This is quite common amongst brickies, plumbers and such-like on new build properties.

paulr

thanks