VAT reclaim - converting existing building into a dwelling
Discussion
Good afternoon,
I'm in the process of converting a barn into a dwelling and have just started to look into the VAT reclaim process. Most of the invoices are billed at 5% VAT such as those from my builder however I have a few invoices billed at 20% VAT (utilities, bathrooms, etc).
I was under the impression that I could reclaim part of the VAT on qualifying items billed at 20% so they reflected 5% VAT (i.e. the difference between 20% and 5% VAT), however the following information on form VAT431C as left me a little confused:
https://assets.publishing.service.gov.uk/governmen...
"If you buy a converted house from a property developer, you will not be
charged VAT. This is because the sale of the house to you will be what we
call zerorated. This allows the developer to recover the VAT paid on
building materials during the build from us.
However, if you convert the house yourself, you will not be able to benefit
from the zerorating. This Scheme puts you in a similar position to a person
who buys a zerorated converted property from a property developer.
You may also recover VAT that you’ve paid on the services of conversion."
Part D: Details of the goods and services for which you will be claiming back VAT (Where VAT has been shown separately on the invoices)
Part E: Claiming back VAT at the standard rate
Part F: Claiming back VAT at the reduced rate of 5%
Question 1: Does the paragraph mean I can reclaim every penny of VAT paid on qualifying items?
Question 2: If all VAT can be reclaimed, does Part E require the invoices paid at 20% VAT whilst Part F requires invoices paid at 5% VAT?
Any guidance from someone that is familiar with the process would be appreciated as I tried calling HMRC and after being in a queue for 20 minutes I was greeted with someone that did not seem to be aware of the form or the information required.
I'm in the process of converting a barn into a dwelling and have just started to look into the VAT reclaim process. Most of the invoices are billed at 5% VAT such as those from my builder however I have a few invoices billed at 20% VAT (utilities, bathrooms, etc).
I was under the impression that I could reclaim part of the VAT on qualifying items billed at 20% so they reflected 5% VAT (i.e. the difference between 20% and 5% VAT), however the following information on form VAT431C as left me a little confused:
https://assets.publishing.service.gov.uk/governmen...
"If you buy a converted house from a property developer, you will not be
charged VAT. This is because the sale of the house to you will be what we
call zerorated. This allows the developer to recover the VAT paid on
building materials during the build from us.
However, if you convert the house yourself, you will not be able to benefit
from the zerorating. This Scheme puts you in a similar position to a person
who buys a zerorated converted property from a property developer.
You may also recover VAT that you’ve paid on the services of conversion."
Part D: Details of the goods and services for which you will be claiming back VAT (Where VAT has been shown separately on the invoices)
Part E: Claiming back VAT at the standard rate
Part F: Claiming back VAT at the reduced rate of 5%
Question 1: Does the paragraph mean I can reclaim every penny of VAT paid on qualifying items?
Question 2: If all VAT can be reclaimed, does Part E require the invoices paid at 20% VAT whilst Part F requires invoices paid at 5% VAT?
Any guidance from someone that is familiar with the process would be appreciated as I tried calling HMRC and after being in a queue for 20 minutes I was greeted with someone that did not seem to be aware of the form or the information required.
You might find these web pages useful.
https://www.gov.uk/vat-building-new-home/how-to-cl...
https://www.self-build.co.uk/our-guide-claiming-ba...
https://www.gov.uk/vat-building-new-home/how-to-cl...
https://www.self-build.co.uk/our-guide-claiming-ba...
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