What can we claim back VAT on?

Cookiepus

Hi
we are building at the moment and are getting conflicting advice about VAT.
Some suppliers (windows/ kithchens) are telling us to get our bilder to place the order - then he claims back the VAT.
Our builder is totally legit, but reluctant & non-commital to do it.
What is the story- can we claim VAT back on everything?
surely not.
Thank you
Cookie

Gumbo

Cookiepus wrote: »

Hi
we are building at the moment and are getting conflicting advice about VAT.
Some suppliers (windows/ kithchens) are telling us to get our bilder to place the order - then he claims back the VAT.
Our builder is totally legit, but reluctant & non-commital to do it.
What is the story- can we claim VAT back on everything?
surely not.
Thank you
Cookie

As a home owner, no.
You can avail of the HRI Scheme though.

Cookiepus

So the kitchen supplier was telling fibs?

Gumbo

Cookiepus wrote: »

So the kitchen supplier was telling fibs?

Not sure tbh.
Your builder may be able to pay Ex-VAT but then there's no VAT to claim back?

I wouldn't be an expert on the financial side, so maybe there's some scope somewhere, but if your builder is reluctant then it must be dodgy?

ted1

kceire wrote: »

As a home owner, no.
You can avail of the HRI Scheme though.

If the builder buys and does the work isn't the tax rate of 13.5% chargeable as oppose to the higher rate
http://www.revenue.ie/en/tax/vat/leaflets/mixed-supplies-goods-services.html

Cookiepus

well the bulder wouldnt be doing the work.
i mean - when it comes to things like kitchens & windows
3rd party companies

Gumbo

Cookiepus wrote: »

well the bulder wouldnt be doing the work.
i mean - when it comes to things like kitchens & windows
3rd party companies

Doesn't sound above board.

mickdw

There used to be a scheme in Northern Ireland where one off home builders could reclaim vat but nothing that Im aware of here.

Of course there are many many no legit ways in which a builder might like to get his hands on a ball of cash and possibly give you some discount but no legit ones as as far as private home builder getting vat back

Cookiepus

i dont think we are on the same page.

Seve OB

as far as I know you don't get the VAT back. you get a credit of the VAT amount next year. it means if you are not a tax payer, it is worthless, but if you are, it means you get your VAT back over the course of the next year

Link here OP

http://www.revenue.ie/en/tax/it/reliefs/hri/

Cookiepus

Thanks Steve
i think thats could be what the suppliers could be refering too

Gumbo

Cookiepus wrote: »

Thanks Steve
i think thats could be what the suppliers could be refering too

And is exactly what I mentioned to in post #2

HRI Scheme

SQLDBA

HRI scheme is not available for New Builds.

Gumbo

SQLDBA wrote: »

HRI scheme is not available for New Builds.

True. I was under the impression it was an extension but from re-reading the posts, it may be a new build, so unavailable to the OP.

Calahonda52

Cookiepus wrote: »

So the kitchen supplier was telling fibs?

No.
The issue is how the builder deals with the subsequent cash flows.

Builder pays X + 23% to window guy.
window guy in theory accounts for the VAT properly
Builder takes in the goods and claims the VAT via his accounts,
he now has X worth of kit on his balance sheet so how does he move it.

he should include the X in the overall bill to the soon to be home owner and charge 13.5% on the lot, which will include labour.

More than lightly he will add on X plus some markup, maybe 10%

The windows one is fine, as are the kitchen carcasses but as far as i remember there is an issue with white goods, especially in the context of the 2/3 rule.

The home owner than pays Y plus 13.5% for the fitting only of the windows and carcasses.

Y might be higher in this case if the hardware is not part of the deal.

The problem with this arrangement is that the soon to be home owner will never know if he has been "done".

It is best to assume that he is.:)

Cookiepus

Thanks
this is getting really complex.
is it a new build?
old 70's house house which was bought in mid 2000's
the new owner gutted the old part and started a large extension.
he then ran out of cash.
the earth cooled
we bought the site and are finishing it

Gumbo

Cookiepus wrote: »

Thanks
this is getting really complex.
is it a new build?
old 70's house house which was bought in mid 2000's
the new owner gutted the old part and started a large extension.
he then ran out of cash.
the earth cooled
we bought the site and are finishing it

Sounds like a refurbishment and extension.
HRI Scheme should be applicable to you.

Sleeper12

The tradesmen need to be registered with the scheme. They can be vat registered but not registered for the scheme. Most are reluctant to register for the scheme. I was asking my accountant about registering & he talked me out of it. Can't remember the downside for the tradesmen but there is one.