Q&A: RECLAIMING VAT ON MATERIALS (CIS SUBCONTRACTOR)

[@DALEYPLUMBING]

Hi Dan I sent a reverse vat charge invoice to a client (main contractor) and they said as the works is maintenance it is not covered under the rev vat scheme or CIS scheme. The works I carried out wasn't new build it was the alteration to the existing services. What's your take on this ? Cheers

[@HeelanAssociates]

That sounds odd, as on the surface info you mention it sounds likely it should be CIS and VAT rev, but I couldn't say for sure without more info. Have you had a read here? www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

[@DALEYPLUMBING]

@@HeelanAssociates They have referred me to Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340) - Appendix C This Appendix gives guidance on construction operations that are included within the scheme and those that are excluded. - C.3 Included and excluded operations - Operations excluded: manufacture, delivery, repair, servicing or maintenance of these items: systems of heating lighting air-conditioning ventilation power supply and distribution drainage sanitation water supply and distribution fire protection works lifts, plant or machinery needed by the specification of a building under construction or alteration replacement of system parts not involving other construction operations (for example, taps or a radiator) - What are your thought ?