Timber Frame Vat Rate?

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bb12

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Does anyone know what vat rate applies to timberframe quotations? 13.5 or 21%?
 
If it is supply and fit of Timber frame house you should be charged 13.5 %


Not sure what the case is if it is a supply only case (probably 21%)

P.S I work for a timber frame company supplying estimates.
 
This is Revenue's guide on VAT on building.

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Supply only should be 21%. The 13.5% rate in supply and fit / or supply and erect would also be subject to the "two-thirds rule" ( see the revenue leaflet.
 
surely that is a disincentive to get a supply only kit, as you will pay 21% on the kit and 13.5% on the installation? Whereas if you bought the erected kit you would only pay 13.5% on both. Doesn't seem to make too much sense.

On a slightly different note I would be cautious to get a supply only kit. For example, how do you deal with a situation where a problem arises which the builder claims was caused by errors in the manufacture and the manufacturer claims were caused by errors in the installation.

J2K
 
Jake2000 said:
surely that is a disincentive to get a supply only kit, as you will pay 21% on the kit and 13.5% on the installation? Whereas if you bought the erected kit you would only pay 13.5% on both. Doesn't seem to make too much sense.

On a slightly different note I would be cautious to get a supply only kit. For example, how do you deal with a situation where a problem arises which the builder claims was caused by errors in the manufacture and the manufacturer claims were caused by errors in the installation.

J2K
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You're spot on there on the former......and even supply & fit won't necessarily guarantee you a cure for the latter........
 
thanks all. i can't see how just getting the supply at the 21% rate could work out cheaper? you still have to pay someone to erect it unless you do it yourself and then you have no comeback to the timber frame company.
 
just because the builder is billing you for the supply and fit rate of 13.5% doesnt mean that he hasnt included of the 21% supply rate in his invoice.
 
ludermor said:
just because the builder is billing you for the supply and fit rate of 13.5% doesnt mean that he hasnt included of the 21% supply rate in his invoice.
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But the 21% rate on materials hardly matters to the builder as they will be claiming this back on their VAT returns?
 
yes, that's the point... a builder will get charged 21% when he buys from a manufacturer, however he claims this back and should only charge for the 100% to the client... plus his labour of course + 13.5% on the total... So end users pay VAT, not builders or trades...

This also applies to fitted furniture, i.e kitchens and wardrobes... 13.5% if fitted, 21% if sold unfitted...

Cheers
 
bb12 said:
thanks all. i can't see how just getting the supply at the 21% rate could work out cheaper? you still have to pay someone to erect it unless you do it yourself and then you have no comeback to the timber frame company.
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If you erect it yourself, you'll need your own insurance and how about Premier/Homebond.............will they cover you ?? And will your engineer sign off on your work...........??
 
I have a timber frame going up at the moment, with lots of hassle and still no satisfaction from the supplier but anyway, when I was getting quotes initially most companies for supply and install were 13.5% for everything including supply only items. The company I went with in the end broke each item down specifically into supply and fit and supply only items. Supply and fit items like kit itself, felt and battens all fitted is 13.5% while the insullation, plasterboard, doors which were supply only as part of the kit are all at 21%. Were they not entitled to sell the whole thing to me as one piece at 13.5%? Basically I'm having so much trouble with them now I'm looking for every avenue to get some money or satisfaction back from them.
 
pat_os said:
Were they not entitled to sell the whole thing to me as one piece at 13.5%?
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Only if value of the material element of their invoice(s) was less than two thirds of the total charge.

Ultimately, any supplier's VAT policies are a matter for themselves and they don't really have any particular obligation to justify these policies to customers or anyone else. After all, it is the supplier who would be financially exposed should any liability arise in the future in respect of non-compliance with VAT laws and they would hardly be in a position at that stage to seek to recover any undercharge from their customers.
 
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