VAT for most work on houses and flats by builders and similar trades like plumbers, plasterers and carpenters is charged at the standard rate of 20% - but there are some exceptions.
Zero rate VAT
You may not have to charge VAT on some types of work if it meets certain conditions, including:
There’s a separate guide on VAT refunds if you’re building your own home.
Reduced rate VAT
You may be able to charge the reduced rate of 5% for some types of work if it meets certain conditions, including:
- installing energy saving products and certain work for people over 60
- converting a building into a house or flats or from one residential use to another
- renovating an empty house or flat
- home improvements to a domestic property on the Isle of Man
Buildings that aren’t houses or flats
You don’t need to charge VAT for construction work on certain other types of building.