HMRC has published an updated version of VAT Notice 708 which relates to Buildings and Construction services. The notice includes a list of instances where zero-rating may not apply. In particular:
- renovation or alterations to a single household
- dwellings vacant for two years prior to renovation
- supplies relating to communal residential buildings or buildings used by charities
The guidance provides greater detail on which bodies HMRC considers qualify as charities and the definition of “similar to a village hall” for VAT purposes. The guidance states that: “The emphasis for a village hall should be on promoting the use of the facilities for the benefit of the whole community rather than for the benefit of one particular group. An important characteristic is that the building must be available for use by all sectors of the community.” Suppliers are required to check with the Charity Commission when dealing with charities.
To read HMRC VAT Notice 708: Buildings and construction (August 2014) click here.