VAT leeway for renovation work
Officials give owners and builders a few weeks’ grace on tax reduction to make up for stormy winter
ANYONE doing exterior renovations involving roofing, outer walls, foundations, chimneys or storm water drainage has been given a few weeks’ leeway before VAT increases from 7% to 10%.
Tax officials have reacted after pleas from the building trade to take account of the stormy weather over the start of the year, which delayed or halted works that had been started.
Previously there had been a March 14 deadline for having the work done and paid-for but now owners and trades have been given an extra few weeks to get work completed.
VAT on all renovations increased to 10% on January 1 except where a contract had been signed - and 30% deposit paid - before December 31, 2013. Then there were further deadlines of February 28 for the bill to be received and March 14 for it all to be paid.
Now, the storm delays have prompted the government to extend these deadlines so that the bill must be received by March 31 and the work paid in full by April 14.
The Budget Ministry has said that anyone who has already been billed at 10% VAT for completed works should completed between March 1 and March 19 (when the tax change was published) should get a new amended 7% VAT bill from the tradesman and be refunded the difference.
These changes do not affect the reduced rate of VAT on eco-friendly renovations, which is 5.5%.
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