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.
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)
Supplies of Land and Buildings
The land exemption
The effects of the option to tax
Services related to the supply of land
The VAT liability of a 'building'
The zero rate 'qualifying' building
Supplier due diligence and documentary evidence
The Transfer of a Going Concern (TOGC)
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'
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
Deemed supply and self supply
Recap and close