VCONST11010 - Supplies of building materials by contractors: about this section

This section explains the legal basis for zero-rating or reduced-rating building materials. It doesn’t explain what ‘building materials’ are. VCONST13000 provides guidance on this.

VCONST11130 provides guidance on the VAT treatment of goods being supplied without services.

Conditions for zero-rating and reduced-rating

For the ‘goods’ element of a builder’s supply to be zero-rated or reduced-rated, all of the following conditions must be met:

• the goods must be ‘building materials’ (VCONST13000)
• they must be supplied along with zero-rated or reduced-rated services (check VCONST11300 for guidance on delivered goods)
• those services must include the ‘incorporation’ of the building materials in the building concerned or its site.