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HMRC internal manual

VAT Construction

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HM Revenue & Customs
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DIY builders and converters VAT Refund Scheme - eligibility of claims: entitlement to refund

Refunds under the Scheme must be made in accordance with the provisions contained within Section 35 of VATA 94. Through Section 35(2) and VAT Regulations 1995 (SI 1995/2518) at Regulations 200 and 201, HMRC has prescribed how a claim is to be made and the time limits for making a claim.

In order for a claim for a refund to succeed the following conditions must be met:

Condition Legal reference Further information Further information
       
Reference to guidance is provided in brackets (All references are to VATA 94) New builds guidance  
VAT431NB Conversions guidance
VAT431C      
  1 - VAT can only be refunded at the correct rate and if it is legally chargeable 35(1)(c) Section 2
Section 2 Part C Section 2
Section 2 Part C      
  2 - Relevant works must be carried out. 35(1A) Section 1
Section 2 Part B Qu. 9 - Qu. 11 Section 1
Section 2 Part B Qu. 9 - Qu. 13        
  3 - The claim must be by a person who carries out the relevant works. 35(1)(A) and 35(1C)a Section 1 Section 1
  4 - The works must be lawfully carried out. 35(1)(b) and 35(1C)(b) Section 2 Part B Qu.12 - Qu. 15 Section 2 Part B Qu.14 - Qu. 17
  5 - The works must be carried out otherwise than in the course or furtherance of any business. 35(1)(b) and 35(1C)(b) Section 1  
Section 2 Part B Qu.16 Section 1
Section 2 Part B Qu.18      
  6 - The claim must be for eligible goods and/or services. 35(1)(c), 35(1B), 35(1C) and 35(3) Section 1

Section 3

  Section 1

Section 3

       
  7 - The goods and services must have been used in the construction or conversion. 35(1)(c) and 35(1C)(d) Section 1
Section 3 Section 1

Section 3

     
  8 - The claim must be made in the correct manner. 35(2)
Reg. 201(b) and Sch 1 to the VAT Regs [Forms 11A (for new builds) and 11B (for conversions) In the legally prescribed format using pages 1 - 7 of the claim form In the legally prescribed format using pages 1 - 9 of the claim form      
  9 - The claim must be in time 35(2) Section 2 Part B Qu.14 Section 2 Part B Qu.16  
  10 - The correct supporting documents must be furnished. 35(2) Claim form Part F Item 23 (Checklist) Claim form Part G Item 25 (Checklist)