Changes to the Building and Construction VAT Notice 708
A recent change to the Building and Construction VAT Notice 708, which came into effect from August 2014, means that intelligent lighting systems are now regarded as articles ordinarily incorporated in dwellings. The accompanying remote controls, however, are not included in this.
This change affects only supplies where a contractor is supplying zero-rated or reduced rated services of construction or conversion work to dwellings, not commercial buildings, and with those services supplies ‘building materials.’ To be classified as ‘building materials’, the following conditions must be met:
|1||The articles are 'incorporated in the building (or its site).||Paragraph 13.3|
|2||The articles are 'ordinarily' incorporated by builders in that type of building||Paragraph 13.4|
|3||Other than kitchen furniture, the articles are not finished or prefabricated furniture, or material for the construction of fitted furniture||Paragraph 13.5|
|4||With certain exceptions, the articles are not electrical or gas applicances||Paragraph 13.6|
|5||The articles are not carpets or carpeting material||Paragraph 13.7|
(To find the paragraphs mentioned in the further information column, see link below)
Intelligent lighting systems are now considered to be building materials in this context and can be zero-rated or reduced rated when supplied by the contractor for the construction or conversion works.
More details on these changes can be found here.