 VAT treatment of scaffolding
The supply of scaffolding during the construction of commercial buildings will be subject to VAT. Where, however, the scaffolding is supplied during the construction of residential property there is the possibility that at least part of the charge can be free of VAT.
This issue was looked at in the recent Tribunal case of Pharoah Scaffolding. The Tribunal ruled that the charge for the scaffolding had to be apportioned between the hire of the scaffolding (subject to VAT) and the erecting, altering, and dismantling of the scaffolding (free of VAT). The case suggests that it would be difficult to have the entire charge free of VAT, and it can be expected that HMRC will challenge any charge for scaffolding which is entirely zero rated.
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