ABSTRACT
Value Added Tax (VAT) is a tax on the consumption of goods and services. The UK introduced a domestic VAT regime when it joined the European Community in 1973. The principal source of European law in relation to VAT is Council Directive 2006/112/EC, a recast of Directive 77/388/EEC, which is currently restated and consolidated in the UK through the VAT Act 1994 and various Statutory Instruments, as amended by subsequent Finance Acts. In general the provision of construction services by a contractor VAT standard rated at 20", however, there are a number of exceptions for construction services provided in relation to certain relevant residential properties and charitable buildings. Construction services provided in the course of construction of an annexe for use entirely or partly for a 'relevant charitable' purpose can be zero-rated. Certain goods and services supplied to a disabled person, or a charity making these items and services available to disabled persons can be zero-rated.
