Building a garage - Is it VAT Exempt ?

[Hobo]

New detached double garage to an existing house. Would/should the builder be charging VAT ?

[Pupp]

Hobo said:

New detached double garage to an existing house. Would/should the builder be charging VAT ?

If he's VAT registered, it's chargeable

[Slagathore]

yes?

Isn't that why when doing cash jobs it is usually cheaper, because they don't have to pay vat?

Edited by sgathore on Sunday 25th January 20:24

[Busamav]

Without a doubt ,

unless you were registered disabled theres a chance it could be exempt .

[deeps]

There's VAT on conservatories, what's the difference?

That's why new house buyers were getting the developer to include a conservatory with the house vat free.

[rsv gone!]

Busamav said:

Without a doubt ,

unless you were registered disabled theres a chance it could be exempt .

Or a registered charity

[Eric Mc]

rsv gone! said:

Busamav said:

Without a doubt ,

unless you were registered disabled theres a chance it could be exempt .

Or a registered charity

No.

When charities buy goods and services from VAT registered traders they are usually charged VAT in the normal manner UNLESS the specific goods or services being purchased can be shown to be of a type which has a direct link to the charitable activity carried out by the charity.

[john_p]

sgathore said:

yes?

Isn't that why when doing cash jobs it is usually cheaper, because they don't have to pay vat?

Edited by sgathore on Sunday 25th January 20:24

They do HAVE to, they just don't

[Glassman]

Hobo said:

New detached double garage to an existing house. Would/should the builder be charging VAT ?

Many people paying for their windscreens often ask why the invoice shows VAT. Moreover, why they are being charged the duty.

[Slagathore]

john_p said:

sgathore said:

yes?

Isn't that why when doing cash jobs it is usually cheaper, because they don't have to pay vat?

Edited by sgathore on Sunday 25th January 20:24

They do HAVE to, they just don't

Ahh, I worded that a bit wrong

[Iain328]

I think VAT is reclaimable on new build houses but all modifications/extensions etc don't qualify.

[Tadite]

You guys just have an AMAZING amount of taxes....

Who the heck gets taxed for building something on his own house?

[AJS-]

The Britistanis do, 17.5% in peace time. Cut to a mere 15% temporarily, as part of Gordon Brown's plan to save the world...

[Eric Mc]

Tadite said:

You guys just have an AMAZING amount of taxes....

Who the heck gets taxed for building something on his own house?

To be fair, many of the States levy Sales Taxes on retail goods and services. VAT is a form of Sales tax.
I would guess that US citizens have almost as many taxes to conern theselves about as us lot. I would concede that the overall burden of taxation is lower in the US than it is in the UK, but then again, we get more "services" provided to us by the government (although the quality of those services can be questionable at times).

[Jasandjules]

Iain328 said:

I think VAT is reclaimable on new build houses but all modifications/extensions etc don't qualify.

That sounds about right to me as well.

[rsv gone!]

Eric Mc said:

rsv gone! said:

Busamav said:

Without a doubt ,

unless you were registered disabled theres a chance it could be exempt .

Or a registered charity

No.

When charities buy goods and services from VAT registered traders they are usually charged VAT in the normal manner UNLESS the specific goods or services being purchased can be shown to be of a type which has a direct link to the charitable activity carried out by the charity.

My reply was too sweeping.

[Eric Mc]

I was the Treasurer of a charity for 15 years so was quite well versed on what sipplies and services could and couldn't be Zero Rated.

[rsv gone!]

Eric Mc said:

I was the Treasurer of a charity for 15 years so was quite well versed on what sipplies and services could and couldn't be Zero Rated.

I'm in construction so I have some experience of charities gaining VAT exemption on new buildings but the rules are complicated (as I'm sure you know). It is a minefield for the contractor as they are responsible for claiming the VAT from the client but IR don't seem to like giving a simple unambiguous answer as to VAT rate.

And then you get into vat-able fixtures; ie vinyl is nil rated but carpet is standard rated ....etc

[King Herald]

Hobo said:

New detached double garage to an existing house. Would/should the builder be charging VAT ?

Why would he NOT charge, is more the question???

[rsv gone!]

King Herald said:

Hobo said:

New detached double garage to an existing house. Would/should the builder be charging VAT ?

Why would he NOT charge, is more the question???

He may have been confused by the policy of new housing being zero rated.