Can anyone clear this up for me. I understand that if work is carried out before completion then its zero rated for VAT (Karndean and Amtico) to a builder, is it still zero rated to the customer and if so does it have to be invoiced by a certain time? Also, if the customer completes on the house and moves in, do I charge normal VAT rate and they claim it back , zero rate it or does it have to be invoiced and paid before completion to qualify for 0%? Thanks I asked my accountant and he wasn't sure so rang VAT man, his advice conflicts with the guidelines on the HMRC site. Any help appreciated.
If you are registered for VAT then you do not have to charge your customer VAT on the installation of wood/laminate floors or Amtico/Karndean type flooring or on the cost of fitting them. This is provided the work is carried out before the customer moves in. I do not think it matters when the invoice is raised or paid. Incidently although VAT has to be charged on carpet etc. it doesn't have to be charged on the fitting costs.
Always makes sure your client (or the builder) gives you a letter/statement it is a new build and therefore the wood floor (and installation if applicable) is not liable of VAT. Keep that with the invoice (and other related documents) in your client's file. If in the event the VAT man comes knocking, you're covered. When the VAT man then decides VAT should have been applied, you can claim the VAT from the client (or builder) due to given you wrong information.
