Houch

Thanks Jack, the support & advice is appreciated.

I think we've resolved it today. They've now come back and said that their local tax office have advised that, providing the building inspector hasn't issued a certificate (presumably making the building 'complete' under the provisions of VAT notice 708) then it 'is being constructed' and therefore shouldn't attract VAT. That was my interpretation all along. If the guidance even allows for snagging after completion to be zero rated then I really can't see an argument that the fact that the first windows failed and had to be replaced somehow negates the principles of zero rating. I strongly suspect that Nod's assessment was right, i.e. it made their accounting simpler and removed any potential risk for them in the future - but at our expense. All's well that ends well and it's a few hundred quid that we can spend on other stuff. Thank you everyone for your advice and suggestions.

Thanks guys. The windows are fitted now and it's only when I've received the invoice after asking them to zero rate it (which they didn't challenge at the time) that they're now insisting on VAT. We did separate the supply and fitting so I should be okay reclaiming the supply costs and I'm still fighting the issue asking for the grounds, rationale and contrary guidance that they're relying on. I think your right jamiehamy in that they're just going for the safe option at my expense. I can't go into too much detail about the company that supplied the old windows as we have now settled and there was a gagging clause in the settlement agreement where I can't publicly name and shame or review them. I had to accept that to get the refund. In summary though, the problems I had were around severe, and I mean severe leaks. Sash horns and other trims falling off (they were PVCu sliding sash windows). Chrome furniture rusting really badly. Exterior seals perishing. All of this happened within few months. If you've got some specific issues with a company, I can tell you privately whether it was the same one (it was a biggish manufacturer) and how I resolved it.

Hi, We had big problems with our windows for our self-build project and we have had to replace them. We settled with the original company and bought some more from a different manufacturer. The fitter tells us that he's taken advice and insists we're definitely liable to pay VAT on the basis that they're replacements. I'm convinced we should be zero rated for VAT on the fitting in the same way as we are for any other work. We're still at first fix stage, the house isn't habitable and we haven't put our VAT reclaim in yet. Can anyone clarify please and, equally if not more importantly, let me know how I can get written confirmation from somewhere (HMRC?) that will satisfy/reassure the installer? Thanks Dave