See vat notice 708.
Vat on carpets new build.
In the past things like burglar alarms electrical appliances carpets curtains etc have all been added back as deemed by vat man as not a part of a new build home.
Builders working on new buildings should be zero rated anyway and you won t pay any vat on their services.
Housebuilders have been able to recover most input vat to the extent that the inputs must relate directly to the output being a new build home which is zero rated.
If the buiding you are working on meets hmrc s definition of a new build you can zero rate materials that are ordinariy installed in such buildings such as vinyl.
Conversions the building being converted must usually be a non residential building.
Carpets on the other hand do not qualify for zero rating and should be standard rated.
The vat meaning of building materials 13 1 the importance of building materials if youʼre a contractor supplying zero rated or reduced rated services described in this notice the building materials you supply with those services and incorporate in the building or its site will also be zero rated or reduced rated.
A granny flat or annexe you re building as an addition to an existing house cannot be used or sold separately to the main house.
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