Can the purchase of building materials ever be VAT zero-rated?
The purchase of building materials can never be VAT zero-rated – it is only the provision of construction services that are VAT zero-rated. Materials bought and installed by a building contractor can be zero rated as part of the construction services provided. Some materials are VAT standard rated even if provided with zero-rated construction services – this includes certain items of prefabricated or prefinished furniture or materials for the construction of fitted furniture (excluding kitchen furniture), kitchen ‘white goods’ and some floor coverings such as carpets.
