Conversions the building being converted must usually be a non residential building.
Vat on carpets new build.
See vat notice 708.
A granny flat or annexe you re building as an addition to an existing house cannot be used or sold separately to the main house.
Carpets on the other hand do not qualify for zero rating and should be standard rated.
This means you must charge vat at the standard rate of 20.
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Housebuilders have been able to recover most input vat to the extent that the inputs must relate directly to the output being a new build home which is zero rated.
In the past things like burglar alarms electrical appliances carpets curtains etc have all been added back as deemed by vat man as not a part of a new build home.
Builders working on new buildings should be zero rated anyway and you won t pay any vat on their services.
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