VAT question

katsutlieff

My husband recently did some tree work for a local builder. the site is a new build in a garden. The invoice has been paid minus the VAT.

The builder is saying as it's a new build the work is VAT exempt and is refusing to pay the full invoice.

I have never come across this before, can anyone shed any light please?

Cudey

Not sure if this is of any help to you?

http://www.hmrc.gov.uk/vat/sectors/builders/new-houses.htm

T.C.

This is correct if the house is a new build. A letter or note on the invoice from them would be helpful for your records though. Basically you can ignore VAT for this: you simply invoice with zero VAT (zero rated supply).

katsutlieff

Thanks for that. I wasn't sure how to account for this as like I said I had never come across it before. I will send a new amended invoice.