Houses and flats
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.
How you report and pay VAT in the construction industry is changing from 1 October 2019. Find out what you need to do to prepare.
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 are not houses or flats
You do not need to charge VAT for construction work on certain other types of building.