Are Windows with external roller shutters VAT exempt.

[Balraj Appadu]

I have been trying to find whether I can find the answer to this question. I have read the HMRC guidance but cannot get the answer. As far as I can see windows are vat exempt but blinds external ones are only exempt if it is a building used for charitable purposes?

can anyone help me with this?Kind Regards

 

[newhome]

If you go for the supply and fit option then the company should zero rate the whole invoice. 
 

Strictly reading the guidance from HMRC it implies that you cannot reclaim the VAT on external blinds and there was a tribunal case that ruled on something similar relatively recently (but these were internal) although they invited the appellant to demonstrate that electric blinds were something that was ordinarily incorporated into an eco home but unfortunately the appellant didn’t come back with any evidence so the tribunal was forced to side with HMRC. 

 

If you go for supply only then put the invoice through when you do your reclaim but don’t rely on getting the VAT refunded as you might be lucky or you might not. 
 

 

https://www.accountancydaily.co/tribunal-pulls-claim-diy-vat-relief-electric-blinds
 

 

 

[Temp]

+1. 

 

Get them to supply and fit then all should be zero rated to you.

 

Google found this.  The claimant lost but perhaps only because he made a bad case. You would need to show they were "ordinarily fitted" into eco-homes intended to have a lot of solar gain or something like that.

 

https://www.whitefieldtax.co.uk/top-tips-on-recovering-vat-if-you-build-your-own-home/

 

"The definition of what is ordinarily installed into what building has recently been challenged in a tribunal case concerning VAT on electric blinds for a sustainable eco-home. Look below for a summary of this case."

 

Edit: This appears to be same case mentioned by @newhome

 

 

Quote

 

Electric blinds in eco-homes – can you reclaim VAT under the DIY scheme?

In Cosham v HMRC [2019] UKFTT 0119 (TC), the tribunal considered whether VAT on electric blinds fitted in a self-built eco home can be reclaimed.

In the planning application, the building was described as sustainable home that reflects what is now a well-established market sector.

The legislation, s35 VATA 1994, Note 22 states that building materials in relation to any description of building are goods of a description ordinarily incorporated in a building of that description.

The taxpayer claimed:

 

• electric blinds are building materials ordinarily incorporated in buildings meeting the description of an eco-home
• the correct comparator should be other sustainable homes and not a traditional house.

HMRC claimed:

• the purpose and use of the building is relevant when deciding what constitutes a building of certain description (defined by size) and not the quality of the build
• therefore the correct comparator should be an ordinary 4 bedroomed house
• electrical blinds are an electrical appliance  as they require electricity [electrical appliances are excluded from VAT DIY scheme and VAT cannot be reclaimed].

 The ruling

• the tribunal agreed with HMRC that the test should be based on the use of the building, but ‘use’ should not be restricted to size
• other defining features should be considered when establishing typical use of the building to define building’s type – for example, type of occupants and type of design
• sustainable builds and eco homes should be recognised as a distinct category of buildings due to their specific design features

It was relevant to determine what materials are ordinarily fitted into an eco-home, rather than any four bedroomed house. Unfortunately the taxpayer failed to provide evidence that electric blinds are ordinarily fitted into eco-homes and lost.
 

 

Edited October 20, 2020 by Temp