If You were able to reclaim vAT on inputs for a new buid , the flip side would be that on a disposal say many years down the road, VAT would have to accounted for on the sale proceeds !
Example build cost site €150,000
Labour €75,000
Material €125,000
Total cost €350,000
VAT claimed back on material would have been €21694 and say to include incidental exps €25,000.
10 yrs down the road you sell for €650,000, the vat content would be €77,313 . You would have long forgotton the €25k and would be horrified at losing €77k.
Secman