Vat Rate on building materials?

[gg66]

I'm building a 200sq ft house and at the moment I'm deciding on which contractor to go with.

Most have just given a single figure for the job butone has broken it down. He has charged 21% VAT on materials.

I was under the impression that when builders but the materials they are charged 21% but when they charge me for the work they should charge 13.5% on all work. Thiswould also apply to any materials they have used. It would tehn be up to them to reclaim the difference from Revenue.

Am I correct on this and can I insist that teh builder charges thelower rate of VAT?

GG

 

[DarraghDuane]

Not certain but he could be right to charge 21% if greater than 2/3 of the contract price is materials that are vatable at 21%. Is this the case?

 

[mikeyny]

I'm building a 200sq ft house and at the moment I'm deciding on which contractor to go with.GG

200sq ft is this a shed or garage surely its not a house .

how do the build rates per square foot/meter compare to those posted on this board ?

 

[gg66]

200 sq m rather than foot. I know Property prices are v high but I still couldn't live in 200 sqft It's NW of Ireland and the quotes I've received vary from 70-85 eu per square ft. not including floors, painting, tiling....Where are the other priceson this board?

On the VAT I guess the 2/3rds rule applies on this one. It's only on a couple of items of materials but it stood out as others didn't state VAT rate. As you say if the materials are greater than 2/3rds (or is it 75%) of the total cost then its charged at 21% otherwise it should be at 13.5%.

GG

 

[Builder]

When u say u r building in NW Ireland, is it near Co. Donegal, as I am building in Donegal town and would be interested in comparing build costs. I am subcontracting the work and as of yet do not have a total bill for materials. Just wondering generally is the cost generally 50% labour charge and 50% material charge or would the split be more 70% labour, 30% materials as a guide. Any info greatly received.