Can A Fireplace Installed After A New House Still Be VAT Free?
One of the largest added costs when purchasing marble fireplaces is the 20% VAT payable (at current rate) on the total order value. The VAT is payable on all similar home improvement products and many homeowners building new homes will try their best (understandably) to reclaim the VAT and lower costs. As the majority of homeowners will be installing fire surrounds in existing homes, VAT is payable and all prices quoted online and in brochures will typically include this cost. If you are able to reclaim the VAT, there is substantial potential savings (EG a £400 fireplace will only cost £320, effectively saving you eighty pounds).
How to claim VAT on a new build fireplace installation.
1. Like most tax related issues, the laws and rules change frequently and it is advisable to log onto the inland revenue website to check current laws and regulations and get the latest information. At present the rules are quite simple and straight forward to follow and simply require you to have one invoice for the fire surround, fire and installation to be eligible to reclaim the VAT. The fireplace must also be installed prior to receiving your completion certificate for your home (hence be installed in a new home).
2. We often get asked if it is possible to reclaim the VAT if you have already completed your new home and unfortunately this is not possible as a installation after the completion of your home will be deemed as a ineligible (at present)