no vat - kitchens in north - new build???

Lynch32

hi all
just a wondering if anybody heard of this before. i was getting a quote for my kitchen in the north and when i got the price i asked did it include vat (as i hate getting the surprise at the end when they day plus vat).
Anyways they told me that they don't charge vat on kitchens for a new build in the north. They said it applied to the south also i.e. if a nothern company was supplying a kitchen across the border.
I never heard this before, just wondering if this is genuine, or is it just a means to stop us from the south trying to get vat off my using our builder's vat number i.e. are they really charging vat but just not saying. Hope that doesnt sound paranoid:o
Has anybody heard of this before?
Cheers
S

smashey

Hi Lynch,

That doesn't sound right. Companies in the Republic as well as NI are obliged to charge VAT. The only exception to this is if you are registered for VAT here then you can buy your stuff in NI without paying the VAT. You have to produce your VAT cert to avail of this.

Lynch32

thanks smashey, i thought this strange too. Wonder why they would tell me this? They specifically said it was just for new builds i.e. couldn't do it if it was a second/replacement kitchen.
Best thing for me to do is to go to another kitchen supplier in the north and ask them. I'd be annoyed if they were pulling a fast one on me.
Thanks
s

scanner1

Lynch32 wrote: »

thanks smashey, i thought this strange too. Wonder why they would tell me this? They specifically said it was just for new builds i.e. couldn't do it if it was a second/replacement kitchen.
Best thing for me to do is to go to another kitchen supplier in the north and ask them. I'd be annoyed if they were pulling a fast one on me.
Thanks
s

I could be wrong on this, but I think I read somewhere that in the UK there is no VAT to be paid on materials for new builds, it was introduced
some years ago to stimulate the building industry, could be completley wrong tho:)

Lynch32

i just rang another kitchen company and they said the same so it must be true I guess. I've no reason to believe the guy i was speaking to was telling me porkies. Strange how this isnt a very well known fact

gman2k

Hi OP, you might PM me the name of the kitchen suppliers you were chatting to, as I'm getting very near that stage myself!

unclebill98

the only was to import anything without paying vat is if your vat reg'd and your importing something that is linked to your business. Sounds fishy...

muffler

unclebill98 wrote: »

the only was to import anything without paying vat is if your vat reg'd and your importing something that is linked to your business. Sounds fishy...

That would be about right if you are buying it and "taking away". You need a VAT number.

If however someone from N. Ireland provides and fits the products here then its zero rate VAT afaik.

RKQ

scanner1 wrote: »

I could be wrong on this, but I think I read somewhere that in the UK there is no VAT to be paid on materials for new builds, it was introduced
some years ago to stimulate the building industry, could be completley wrong tho:)

Scanner1 you are correct - no VAT in UK on new builds. Check this includes new kitchens in a new build, as it might be building materials only.

Ring Inland Revenue to confirm. Either way their VAT is so low theres still savings to be made.

WHU

I would make sure on this, effectively you are importing and I believe you pay VAT at the UK rate which is currently 15%

bauderline

This is perfectly legal. Your builder can purchase the kitchen in the North and not pay any VAT as long as he produces his VAT number. The practice is common and is often availed of when buying windows.

Much savings to be had !

P.

Scober11

Surely if the builder uses his vat # in the North and gets it "vat free" then when he charges you for the product he must add on vat at our rate. I would expect that Vat must be paid somewhere along the lines or we all would be at it?

Kinetic^

bauderline wrote: »

This is perfectly legal. Your builder can purchase the kitchen in the North and not pay any VAT as long as he produces his VAT number. The practice is common and is often availed of when buying windows.

Much savings to be had !

P.

I'm not so sure about this tbh. If you're located in the north then yes it's all good but you're down south so wherever the kitchen is purchased by your builder doesn't matter. The fact that your builder (if from the south tha tis) would be registered for VAT down here, means that he would have to charge VAT to you on the kitchen. So there are no savings to be had, even for the builder as VAT is more of a cashflow issue for business' rather then an expense like it is for the average consumer.

I am ofc open to correction, merely applying some basic VAT laws.

edit: also, if the service is being provided by a northern builder down south then I think southern VAT rates apply as it's the place where the service is provided. (not 100% sure on that though).

mickdw

Its nothing to do with the builder having a Vat number as that would have no eeffect on the cost to the customer. There is something in uk where selfbuilders can claim back the vat on their homes without ever being vat registered. So I expect this is genuine.

RKQ

Lynch32 wrote: »

Anyways they told me that they don't charge vat on kitchens for a new build in the north. They said it applied to the south also i.e. if a nothern company was supplying a kitchen across the border.

10th March 2009
European Finance Ministers have voted today to allow EU Member States to charge VAT at five percent on home maintenance and repairs marking a big victory for the ‘Cut the VAT’ coalition which has been campaigning to get the UK Government to cut VAT for all maintenance and repair work.

Seems like there will be other changes to VAT and the way it is charged in the UK. Hope the Dail takes note.

dlambirl

This should be on bargain alerts!!