Input tax on roller blinds

Wickford Development Co Ltd (TC7864) is the latest decision concerning the so-called builder’s block on recoverable VAT (VAT (Input Tax) Order 1992 art 6). As the name suggests the provisions render as non-deductible input tax which would otherwise be deductible in respect of expenditure on goods incorporated in a new dwelling which is supplied by way of a zero-rated supply.

Under art 6 developers cannot recover input tax on such goods other than ‘building materials’. VATA 1994 Sch 8 group 5 note 22 defines ‘building materials’ as ‘goods of a description ordinarily incorporated by builders in a building of that description (or its site)’ and lists a number of exceptions – items which might otherwise fall within the definition of ‘building materials’ but which are specifically excluded. Note 23 clarifies that the incorporation of goods in a building includes their installation as fittings.

The...