Save on VAT for new buildings
Guiding buildings qualify for a zero VAT rating which means you can save money on construction
Zero VAT on new guiding buildings
The construction costs of local guiding buildings can be zero-rated for VAT. This means that the builders won't charge you VAT as they can claim it back.
To qualify for zero-rating the building must be available for local unit meetings and for hire to members of the local community. The building can be owned exclusively by the unit, District, Division or County.
How to get the zero rating
Download a zero-rated building work certificate - and fill out the form, making sure that you tick the box for ‘a relevant charitable purpose’ in Section 4.
When you have filled out the certificate you will need to hand it to the contractor, who will send it to their VAT office. Each separate contractor will need their own certificate.
Refurbishments and extensions
Zero-rating doesn't apply to refurbishments of any kind. So if you're planning a major refurbishment of your meeting place, it may be worth considering whether it would be cheaper to demolish the existing building and start over.
Zero-rating does apply to a self-contained annex. An extension can be made into an annex but you will need to follow the specific guidelines on what is considered a self-contained annex.
You can find out more on the HM Revenue and Customs website.
Get zero-rated VAT
By filling out the certificate for zero-rated and reduced-rated building work.
