My client is providing landscaping services to a developer constructing a new house. Do I charge VAT?
Most importantly get and retain a copy of the planning consent granted to the developer. This will show the extent of landscaping included in the consent and determines what can be treated as zero rated sales. If goods and services provided by your client are not specifically listed in the consent then those will be standard rated.
What is basic landscaping?
Basic activities such as suppling and levelling top-soil, laying turf or grass seeding can be zero rated but not the supplies of “decorative planting.”
What is decorative planting?
If there are any trees to be replaced because of damage or disease then then can also be provided as zero rated supplies. The planting of any other shrubs, trees and flowers are not normally classed as “closely connected” with constructing a new dwelling and so will be standard rated unless they are specifically detailed on the planning consent.
Landscaping which is not directly part of the new home construction
Landscaping within the curtilage or building plot can only be zero rated when it is basic landscaping as detailed above. If the landscaping is further away such as communal areas on a new development then you would expect this would be detailed in the planning consent.
Annette Woods – Vantage Fee Protect Tax Consultant
18th January 2018
Is this project outside UK VAT?
Definition of a dwelling amendment
Should you charge overseas customers VAT?
Flat Rate Scheme
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