Key Post: Vat for self build.

M

mutley

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I am readin uk self build magazines . They mention that if you self build you shouldn't pay vat on goods or services.

Is this true for Ireland also?
 
Vat for self build

unfortunately this is not the case for Ireland
 
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So who can get VAT back and whats the reasoning behind it?
 
Re: ...

Businesses that are registered for VAT can claim it back as far as I know. See Tommy McGibney's [broken link removed] for example.
 
Re: >> Vat for self build.

An individual can't relaim VAT on a self build unless they are an incorporated business or a sole trader registered for VAT (and the business is builing related I think?)
If you are self building and you purchase your own materials you pay 21% VAT

If you employ a builder and he purchases the materials he pays 21% to the supplier. However when he charges you he should charge you 12.5% (check this its certainly lower that 21%). He then recoops the difference in repayments from the Revenue Commissioners.

At least this is how it should work in practice, you need to keep an eye (probably bith eyes) on the prices your builder is charging you for materials and ensure he is charging the suppliers costs before VAT plus his own 12.5%

GG
 
Re: >> Vat for self build.

VAT is now 13.5% (was 12.5% was 1 year about 3/4 yrs ago)

Theres a "2/3rds" rule, building service VATable at 13.5%, most materials (except, I think, concrete and concrete blocks) VATable at 21%. If the material makes up more that 2/3rd's of the total price then everything is VATable at 21%.

Suppose would only really arise where guy in for short time fitting an expensive alarm or something - maybe best not to ask him is he charging you 21% on everything!!

As mentioned below, can give a 7.5% saving where you order materials through the person who is going to install/fit/build them in, they pay the 21% you would have paid but only charge you 13.5% [correction, NOT 21%] (assuming 2/3rds rule doesnt kick in), you save 7.5% (which the builder gets refunded from Revenue or offset against other VAT payable to Revenue).
 
Re: >> Vat for self build.

Betsy Og said:
they pay the 21% you would have paid but only charge you 21% (assuming 2/3rds rule doesnt kick in),
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Thanks for the update Betsy, I wasn't aware of the 2/3rd rule, will keep an eye on this with my build. Do you know if this applies to items like bathroom sanitary ware, kitchens and tiles or is it only strutural materials?

Assume you meant "only charge you 13.5%" above

GG
 
Re: >> Vat for self build.

gg66 said:
Do you know if this applies to items like bathroom sanitary ware, kitchens and tiles or is it only strutural materials?

Assume you meant "only charge you 13.5%" above

GG
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Yip, I meant to say only charge you 13.5%.

Re the 2/3rds rules, it applies to all materials/jobs but, to be honest, I dont think tradesmen know of or heed the rule - so dont feel obliged to be the great eduacator!!
 
Re: >> Vat for self build.

Betsy Og said:
Yip, I meant to say only charge you 13.5%.

Re the 2/3rds rules, it applies to all materials/jobs but, to be honest, I dont think tradesmen know of or heed the rule - so dont feel obliged to be the great eduacator!!
Click to expand...

Thanks, I don't mind being an educator at all if it's on a large project and it saves me money but I can see your point on getting the bathroom tiler to listen..

GG
 
Re: >> Vat for self build.

gg66 said:
Thanks, I don't mind being an educator at all if it's on a large project and it saves me money but I can see your point on getting the bathroom tiler to listen..

GG
Click to expand...

Well my real point is that you would be eduacating them so that they might charge you MORE, i.e. 21% VAT whereas, in their ignorance or slackness, they might only charge you 13.5%

Nothing like a 7.5% kick up to bum to turn you off being a teacher !!!!!!!!
 
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