Property developers – Make sure your claim for VAT on blinds does not fall out of the 48 month time to claim window
HMRC has historically not regarded blinds as items that are ordinarily incorporated in dwellings. When a property developer sells a zero-rated dwelling with blinds installed, the property developer has been prevented from recovering VAT on the cost of the blinds. The VAT on the cost of the blinds has been blocked. HMRC has recently decided to review this policy in relation to manually operated blinds. The reason for restricting the policy review to manually operated blinds is that at present it is relatively unusual for property developers to install electric blinds in new dwellings and curtains are easily removed. Until HMRC changes its policy property developers should continue to regard the VAT on the cost of manually operated blinds as blocked, but should consider submitting protective claims now so that VAT that is currently in time to claim is not lost by falling out of the 48 month time to claim window.
Please get in touch with your usual contact at Garbutt + Elliott or send an email to Naveen Sahney on firstname.lastname@example.org or Alex Millar on email@example.com to find out how we can help.