Hi Everyone,

I’ve found conflicting information about this hence why I am asking the question.

My self build house involves the fabrication and constructing on site of a large steel frame. A steel fabricator has done this, now, what can they charge VAT for? I know the cost of service (constructing and fabricating the steel frame) should not be charged to me, however, I am aware I can claim material costs back and so should they be charging VAT on materials? Or, should the whole supply and fit contract be VAT zero rated by them?

Any advice would be great!

Thanks,
Sunny.

Comments
  • Samuel Joy

    Hi Sunny,

    From our VAT reclaiming article https://www.homebuilding.co.uk/maximise-your-vat-reclaim/

    "New build is zero-rated, which means that a VATregistered builder or subcontractor must zero-rate their work and not charge VAT on any labour-only or supply-and-fix contracts.

    Although the builder or subcontractor will have to pay VAT when they purchase materials, they will be able to claim that back at the end of each month, or whatever period they have agreed with HMRC, and they must not seek to pass it on.

    A self builder will have to pay VAT at full rate for the purchase of any materials that they make on their own account, but this VAT is

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