VAT reclaim - gas & electric connections?

[MirandaPoth]

Hello all,

Can you claim for your gas and electric connections?

(I'm posting partly so that I can get my posts up to 10 so I can see 'The Thread'!)

Thanks in advance ?

[vivienz]

They should have been zero rated.  You can't reclaim VAT on labour, only goods (to which eligibility rules apply).  Any labour for the new build, including service connections, is at 0%, so you will need to go back to the service provider and reclaim it from them.

[MirandaPoth]

Thanks Vivienz. Some (a lot) of these invoices are zero rated, but not all, perhaps because our connections were somewhat complicated! I wasn't sure if it was worth putting these in my VAT reclaim - I guess not.

[vivienz]

It would still be worth going back to the service companies and asking them to refund the VAT. For the sake of a letter or two it would be a worthwhile outcome.

[Temp]

+1

 

* Labour (as in actually working on site) should be zero rated to you. 

* Services (as in design services) are standard rated and not reclaimable.

 

* Materials you buy are standard rated and reclaimable.

* If someone does "Supply and fit" on one invoice then both should be zero rated to you. If it's on separate invoices the materials part should be standard rated and reclaimable, the labour part should be zero rated to you.

 

Connection of services should definitely be zero rated to you. Request a revised invoice & your money back. Any problem and you can refer them to the relevant part of VAT Notice 708 and point out it is their legal responsibility to charge you the correct rate. I had to get a new invoice from my water company.

 

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708

[Temp]

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708

 

  Quote

2. VAT liability

2.1 Construction services

The construction of a new building and work to an existing building is normally standard-rated. There are various exceptions to this.

snip

First time gas and electricity connections            0%            Fuel and power (VAT Notice 701/19)

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https://www.gov.uk/guidance/vat-on-fuel-and-power-notice-70119

 

  Quote

the first time connection of a new dwelling or relevant residential or relevant charitable building to the gas or electricity mains supply is zero rated under Group 5 of Schedule 8 to the VAT Act 1994 if the connection is made as part of the construction of the building see Notice 708 Buildings and construction for further details

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[MirandaPoth]

@Temp - thanks very much. I will reread said invoices and see what I can do!

[Temp]

Only one I had issue with was the water company. We had to get a water main diverted as well as the connection. They wanted to charge a lot of VAT on the diversion part. Refused to pay until the VAT was removed. I referred them to 

 

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708

 

  Quote

3.3.4 Work closely connected to the construction of the building

snip

b) produces works that allow the building to be used, such as works in connection with the:

• means of providing water and power to the building (this can extend to the work required to make the connection to the nearest existing supply

snip

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Quite a lot of other things could be covered under that section.