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Our client erects scaffolding on new domestic housing sites for major national developers. The contracts between our client and the developers provide for an erection/dismantling fee plus a weekly rate for hire. The national developer issues a standard-rated self-billing invoice.
Our view is that this is a single supply made in the course of construction of qualifying new domestic buildings and is wholly zero rated. However, on enquiry to HMRC, they advise that the erection/dismantling charge is zero rated, but that the hire charge is standard rated.
Our client erects scaffolding on new domestic housing sites for major national developers. The contracts between our client and the developers provide for an erection/dismantling fee plus a weekly rate for hire. The national developer issues a standard-rated self-billing invoice.
Our view is that this is a single supply made in the course of construction of qualifying new domestic buildings and is wholly zero rated. However on enquiry to HMRC they advise that the erection/dismantling charge is zero rated but that the hire charge is standard rated.
We should be most grateful if readers could advise us as to who is correct.
Query T16 799 — Cricket.
Reply by Menzies:
This matter has been tested before the VAT tribunal in R&M Scaffolding (18954) and GT Scaffolding (18226). Both cases considered the VAT argument that revolves around the meaning and application of VATA 1994...
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