VAT in Land, Property and Construction

Mistakes in this area can be very expensive.  This course focuses on supplies of land and property (including the option to tax) and also supplies in the course of construction, conversion or renovation of a building.  Including the Construction Industry Reverse Charge, to be implemented with effect from 1st October 2019.

Course Content;

Overview of the VAT system
UK statute- The VAT Act 1994
    Standard rate, zero rate, reduced rate, exempt, outside the scope of VAT
Composite supplies (supplies at different rates of VAT)

Grey areas


Supplies of Land and Buildings

The land exemption

The effects of the option to tax

Services related to the supply of land

    Landlord-tenant supplies

The VAT liability of a 'building'

    The zero rate 'qualifying' building

        Supplier due diligence and documentary evidence

The Transfer of a Going Concern (TOGC)


Construction Services
The construction of a new building
    Is a zero rate 'qualifying' building being constructed?
Supplies 'in the course of construction' of a qualifying building

    Items that are not 'building materials'
    Professional services

The supply chain
Work on an existing building
    Change of use
        An increase (or decrease) in the number of dwellings
        Converting a non-residential building for a Housing Association

Construction Services (continued)

    The installation of 'specialised aids for the disabled'

    Renovation of unoccupied dwellings

    Grant funded installations

    Energy saving installations


Input VAT Recovery
The over-riding principles of input VAT recovery

Input VAT attributable to exempt activity
    The partial exemption calculation

    The importance of 'intention' and the change of use clawback
Blocked input VAT- when VAT cannot be recovered

    Goods that are not 'building materials'
Documentary evidence- the VAT invoice and the pro-forma
Employee and subcontractor expenses
Purchases from overseas

Accounting and administration
The VAT invoice, self billed invoice and authenticated receipt
Time of supply

    Stage payments and retentions
Supplies by sub-contractors
Zero rating and other certificates

Liquidated damages   

Deemed supply and self supply

Recap and close