Reduced rate of VAT

[jason121]

Need clarification regarding the VAT rate for an Industrial roof installation.
Customer wants 40kw on 4 units but using personal money to fund project (so not registered for VAT).
Is the VAT 5% or 20 %
Answers on a post card

 

[TedM]

If it is just a normal commercial building then the VAT will be 20%.

The reduced rate only applies to residential accommodation or buildings used for charitable purposes.

See HM Revenue & Customs

 

[Vegelen]

Lots of Industrials units are currently going solar, paying cash in hand......

Could the ganja pound be the solar industries saviour?



Now even drug barons are going green as police raid solar-powered cannabis factory growing £500,000 worth of plants | Mail Online

 

[sparkless]

if it is just a normal commercial building then the vat will be 20%.

The reduced rate only applies to residential accommodation or buildings used for charitable purposes.

See hm revenue & customs

he may be right

 

[sparkless]

........

 

[jason121]

even though its funded by non business funds

 

[TedM]

It's the type of property that makes it eligible for the reduced rate, not the source of the funds (other than a grant in certain circumstances).

 

[moggy1968]

if it's going on his business even if he is funding it with his own money I think he would have to declare it as a loan to the business for tax. If he is taking the FiT I would see that as a benefit in kind so taxable.

 

[pwboston]

I have seen a lot of quotes go in where they have made the VAT rate 5%, in some cases it should be 20% as listed above.

The VAT man doesn't go to the customer for the shortfall, they go to the installer who will be forced to pay the shortfall.

Thats assuming these installers are still here to be investigated within the next 6 years.