Input tax ― building materials and the builder’s block

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note focuses on the VAT treatment of building materials and when VAT recovery on certain items is blocked from recovery.

For in-depth discussion of the legislation and case law in relation to building materials, see De Voil Indirect Tax Service V4.242 and for the input tax block, see De Voil Indirect Tax Service V3.444.

For an overview of input tax generally, please refer to the Input tax ― overview guidance note.

When is VAT recovery on goods incorporated into a building blocked?

VAT on costs incurred for the purpose of making a taxable supply, including a zero-rated supply, can usually be recovered ― see the Input tax ― conditions for recovering VAT guidance note. There is, however, a specific block, sometimes referred to as the builder’s block, on recovery of VAT where all of the following conditions apply:

•
the VAT relates to goods that are not building materials for VAT purposes ― see the ‘What are building materials for VAT purposes?’ section of this guidance note

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Trusts and Inheritance Tax

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more

��Ƶ