VCONST11010 - Supplies of building materials by contractors: about this section

This section explains the legal basis for zero-rating or reduced-rating building materials. It doesn鈥檛 explain what 鈥榖uilding materials鈥� are. VCONST13000 provides guidance on this.

VCONST11130 provides guidance on the VAT treatment of goods being supplied without services.

Conditions for zero-rating and reduced-rating

For the 鈥榞oods鈥� element of a builder鈥檚 supply to be zero-rated or reduced-rated, all of the following conditions must be met:

  • the goods must be 鈥榖uilding materials鈥� (VCONST13000)
  • they must be supplied along with zero-rated or reduced-rated services (check VCONST11300 for guidance on delivered goods)
  • those services must include the 鈥榠ncorporation鈥� of the building materials in the building concerned or its site.