Input tax claim on the supply of blinds installed by developer

The taxpayer was a VAT-registered property developer. A dispute arose as to whether the supply of window blinds in new homes should be zero rated so that the taxpayer could claim input tax.

The developer gave evidence that the installation of blinds was common in new residential developments; they were put in different types and sizes of homes. HMRC said they did not qualify as building materials and an input tax block therefore applied.

In a repeat of a First-tier Tribunal case heard in 2011 (J Price TC873) the tribunal decided that a company building new houses could claim input tax on the purchase of manually operated blinds. It found that they qualified as building materials in the same way as kitchen sinks toilets and heating systems. The blinds were measured and fitted individually and their removal could cause a lot of damage to the window frames and walls...