HMRC has amended Notice 708 which covers:
- when building work can be zero-rated or reduced-rated at 5%
- when building materials can be zero-rated or reduced-rated at 5%
- when the sale, or long lease in a building is zero-rated
- where you can find out more about the VAT domestic reverse charge for building and construction services
- when developers are blocked from deducting input tax on goods that are not building materials
- when a builder or developer needs to have a certificate from their customer, confirming that the building concerned is intended to be used for a purpose that attracts the zero or reduced rate
- when a customer can issue that certificate to a builder or developer
- what happens when a certificated building is no longer used for the purpose that attracted the zero rate, the use for that purpose decreases or the building is disposed of
- the special time of supply rules for builders
- when a business, on using its own labour to carry out building work on a building or civil engineering structure that it occupies or uses, must account for a self-supply charge
Sections 18.1 and 18.2 of the Notice and the certificates in those sections have been updated to show they have force of law under The VAT Act 1994, Schedule 8, Group 5, Note 12.