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HMRC internal manual

VAT Registration

HM Revenue & Customs
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Special considerations for certain registrations: persons making self-supplies

Special considerations arise in determining the value of taxable supplies for the purposes of registration in the case of persons making self-supplies. The Treasury may, by an Order under the VAT Act 1994, section 5(5), provide that certain goods and services are to be treated as taxable self-supplies, that is to say, they are treated as being supplied both by the trader and to the trader and are to be included in the sales turnover for the purposes of determining the liability to VAT register.

Construction services

The Value Added Tax (Self-Supply of Construction Services) Order 1989 (SI. 1989/472), Article 3(1) provides that, where a person makes a self-supply of certain construction services, the open market value of that self-supply of services shall be included in the person’s turnover when determining whether that person should be registered.

The relevant conditions are that the person:

  • construct a building
  • extend, alter or construct an annexe to a building such that the work increases the floor area by 10% or more, or
  • construct any civil engineering work, and
  • the open market value of the work is £100,000 or more, and
  • the work would have not have been zero-rated.

When valuing the supply, you must include demolition work carried out at the same time or in preparation for any of the building work but exclude goods and materials and services which would be zero-rated if supplied by a VAT-registered person. Further advice in these cases is to be sought from Construction and Charities Policy Team.