13.5% vat on builder price

D

der69737

Registered User
Messages
18
Hi

I am building a new house (using contractor not self build).
Is is legal to get builder to buy solar panels (vat 21%) on my behalf and then recharge me at
cost + 13.5%, as part of the overall sales price. Solar panes represents about 2% of total build cost.

Advice appreciated.

Thanks
 
Hi Nige
Thanks!


Just to develop this a little bit....is there a limit on the value of goods to labour in the total purchase price ?

Total build price is €275k. If I could get the builder to buy , say, solar/tiles/timber floors/bathroom fittings,
for say €20k(incl vat 21%) and recharge me at cost + vat 13.5% , the I would save about €1200.
Not bad if it is legit...
How much scope is there to do this ?
 
Revenue have a guide on VAT on building & associated services. It gives good information on all of the points you have raised. Your builder should be pretty familiar with it also. In particular see Appendix 1 which outlines the fixtures which are deemed to qualify for the 13.5% rate once fitted. The items you have mentioned would all seem to be ok for 13.5% as Nige has said. However watch for items such as a kitchen, supply & fit is generally 13.5%, supply only is 21%. Applicances such as fridges etc, whether integrated or not are always 21%.

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