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Assuming this is a qualifying building like a new house..

 

Must be zero rated to you. You cannot reclaim it (Or any other VAT paid in error).

 

Refer the water Co to VAT 708..

 

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

 

Specifically..

 

Quote

 

3.1.2 The basic conditions

 

Your services can be zero-rated when all of the following conditions are met:

 

1) A qualifying building has been, is being or will be constructed (read paragraph 3.2 and section 14).

2)Your services are made ‘in the course of the construction’ of that building (read paragraph 3.3).

3) Where necessary, you hold a valid certificate (read section 17).

4) Your services are not specifically excluded from zero rating (read paragraph 3.4).

 

Snip

 

3.3 Services made ‘in the course of the construction’ of the building

Snip

3.3.4 Work closely connected to the construction of the building

Subject to paragraph 3.3.6, your work is closely connected to the construction of the building when it either:

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)

continues.

 

 

Edited by Temp
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