Should the cost of installing a fibre-to-the-home (FTTH) fibre-broadband connection to a new dwelling be zero-rated for VAT? I ask as I have just going into battle with Cambridge Fibre asking for it to be zero-rated. 

 

Reading VAT Notice 708, I think the answer is yes as it falls under "any other service closely connected to the construction of the building".

 

What does everyone think?

 

(The installation will be a 40m cable between three telegraph poles plus a small bit of excavation for a conduit.)

(Mine is a zero-rated eligible new build in Cambridge, England).

 

 

Edited February 28, 20206 yr by Dreadnaught

Nope as it is not a service required to complete a building, unless the planning permission required the property to have fibre connectivity. 
 

 

 

17 minutes ago, PeterW said:

Nope as it is not a service required to complete a building, unless the planning permission required the property to have fibre connectivity. 
 

 

 

+1

 

 

Thanks! Appreciated. That does make sense even if it is not the answer I would have preferred.

Says you can reclaim VAT on telephone sockets and cables but not telephones here...

 

https://www.gov.uk/guidance/goods-and-services-you-can-claim-for-under-the-vat-diy-scheme#T

 

Presumably talking about extensions.

Edited February 29, 20206 yr by Temp

just resurrecting this one as we have to install FTTP to the house as a Building Reg requirement (RA1) "Dwelling to be gigabit ready for physical infrastructure."

 

Openreach have quoted £567 + VAT but intriguingly they say "Please note that in some exceptional circumstances, the services Openreach provide relating to new build properties, renovations and alterations may be subject to either zero rate (or a lower rate of) VAT. Attached is an information sheet which provides details of where you can find further guidance from HMRC."  (Though in true Openreach fashion there is no information sheet attached.)

 

Since we are compelled to have the connection it feels like it should be zero rated.  Any thoughts?

1 hour ago, Benpointer said:

just resurrecting this one as we have to install FTTP to the house as a Building Reg requirement (RA1) "Dwelling to be gigabit ready for physical infrastructure."

 

Openreach have quoted £567 + VAT but intriguingly they say "Please note that in some exceptional circumstances, the services Openreach provide relating to new build properties, renovations and alterations may be subject to either zero rate (or a lower rate of) VAT. Attached is an information sheet which provides details of where you can find further guidance from HMRC."  (Though in true Openreach fashion there is no information sheet attached.)

 

Since we are compelled to have the connection it feels like it should be zero rated.  Any thoughts?

Ours was not - openreach wouldn’t entertain it apparently in the last 12m they had sought advice from hmrc who stated it could not be zero rated. 

9 hours ago, SBMS said:

Ours was not - openreach wouldn’t entertain it apparently in the last 12m they had sought advice from hmrc who stated it could not be zero rated. 

Ok thanks - I won't waste my time then.  Cheers

Why is anyone paying?  I thought this was supposed to be covered by a government initiative to provide gigabit internet to all properties?

9 hours ago, ProDave said:

Why is anyone paying?  I thought this was supposed to be covered by a government initiative to provide gigabit internet to all properties?

Not for new builds. They require developer contribution capped at 2k. Although sliding scale - the more you build, the cheaper it is.