Reclaim VAT on self build

surely it depends on what the self build is for.

If you building your private residence then I'd say no way, if you claim your ppr or part of your ppr as business asset then claiming ppr ie exempt from capital gains tax at later stage would be impossible on part of building you declared as business

If your building an office which you intend to use for business purposes and get invoices from registered builders then i'd say yes.. only if invoices are from vat registered individuals, and if this is the case and vat at 13.5% you should be stopping35% and returning it to revenue as rct as you are classed as using subcontractors
 
deem said:
you should be stopping35% and returning it to revenue as rct as you are classed as using subcontractors
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I didn't know that RCT applies to self-builders, where the self-builder is not already a contractor by trade?
 
deem said:
If your building an office which you intend to use for business purposes and get invoices from registered builders then i'd say yes
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But surely, you would have to be registered for VAT, as well.
 
2 ways you can do it. Firstly you have to register for VAT. This would then apply to all your self employed income.
Could avoid other S/E income getting caught in the VAT loop by building and owning it with your partner - creating a partnership.
If you are a developer then you can claim vat on the self build - labour and materials. You must obtain a valid vat receipt from your supplier. When you sell the property you must declare vat on the sale at 13.5%. You are a developer if you are solely building the house with a view to sell it on for a profit. The profit will also attract income tax at your marginal rate.
If you are building the house to rent it then you can also reclaim the VAT however you must have waived your exemption from charging vat on your short term rent. When you rent the house you charge the tenant vat at 21%. In effect paying back the vat you have already reclaimed. If you then intend selling the house you de-register for VAT and pay back what you have overclaimed. See seperate thread on this. This whole area is due to change soon. Has it already?
If you are building it for yourself to live in you cannot reclaim the vat.
 
Could you have someone with a VAT number order your building materials etc. and then pay the building supplier's account oneself . Would it be possible to get around the VAT this way ?
 
KCT said:
Could you have someone with a VAT number order your building materials etc. and then pay the building supplier's account oneself . Would it be possible to get around the VAT this way ?
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Using a VAT number does not avoid VAT unless you are buying from another EU state, normal purchases within the state you pay the VAT and reclaim it on your VAT return (either reducing your amount payable or as a refund depending on your VAT on sales. Having one person use their VAT number for EU imports or reclaim VAT that relates to someone else is VAT fraud and will be frowned upon by REvenue
 
KCT said:
Could you have someone with a VAT number order your building materials etc. and then pay the building supplier's account oneself . Would it be possible to get around the VAT this way ?
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That is tax evasion.

sorry, I quoted the wrong post, above. I meant to quote dam099's post to "VAT fraud and will be frowned upon by revenue." Tht is tax evasion.
 
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