We are currently in the design phase of a Security Installation on a new build property (detached household). The existing house has been demolished and the new house is being built from the floor upwards. The client has asked the question if we can invoice them with zero VAT. Can someone please confirm?
The works we are undertaking are fixed items (cameras, fire alarm, control panels). Our invoice will be built up of labour & material elements. Do we need to split the invoice in any way and charge VAT on labour only or vice versa?
Services and (Ibuidling material provided together with services) provided in the course of construction of a zero-rated building are zero-rated. You need to be sure that the various conditions are met eg this was a complete demolition and no retention of walls etc.
If you charge the wrong rate and say zero rate and HMRC says its 20% you fork the difference to HMRC hence its important to cover yourself through a contact/ contacting HMRC or ask client to get a VAT expert to provide written advice etc.