SolvedVCONST24100 | DIY builders and converters VAT Refund Scheme - eligibility of claims: entitlement to refund
From HM Revenue & Customs · VAT Construction
Refunds under the Scheme must be made in accordance with the provisions contained within Section 35 of VATA 94. Through Section 35(2) and VAT Regulations 1995 (SI 1995/2518) at Regulations 200 and 201, HMRC has prescribed how a claim is to be made and the time limits for making a claim.
In order for a claim for a refund to succeed the following conditions must be met:
| Condition | Legal reference | Further information | Further information |
|---|---|---|---|
| Reference to guidance is provided in brackets | (All references are to VATA 94) | New builds guidance VAT431NB | Conversions guidance VAT431C |
| 1 - VAT can only be refunded at the correct rate and if it is legally chargeable | 35(1)(c) | Section 2, Section 2 Part C | Section 2, Section 2 Part C |
| 2 - Relevant works must be carried out. | 35(1A) | Section 1, Section 2 Part B Qu. 9 - Qu. 11 | Section 1, Section 2 Part B Qu. 9 - Qu. 13 |
| 3 - The claim must be by a person who carries out the relevant works. | 35(1)(A) and 35(1C)a | Section 1 | Section 1 |
| 4 - The works must be lawfully carried out. | 35(1)(b) and 35(1C)(b) | Section 2 Part B Qu.12 - Qu. 15 | Section 2 Part B Qu.14 - Qu. 17 |
| 5 - The works must be carried out otherwise than in the course or furtherance of any business. | 35(1)(b) and 35(1C)(b) | Section 1, Section 2 Part B Qu.16 | Section 1, Section 2 Part B Qu.18 |
| 6 - The claim must be for eligible goods and/or services. | 35(1)(c), 35(1B), 35(1C) and 35(3) | Section 1, Section 3 | Section 1, Section 3 |
| 7 - The goods and services must have been used in the construction or conversion. | 35(1)(c) and 35(1C)(d) | Section 1, Section 3 | Section 1, Section 3 |
| 8 - The claim must be made in the correct manner. | 35(2), Reg. 201(b) and Sch 1 to the VAT Regs [Forms 11A (for new builds) and 11B (for conversions) | In the legally prescribed format using pages 1 - 7 of the claim form | In the legally prescribed format using pages 1 - 9 of the claim form |
| 9 - The claim must be in time | 35(2) | Section 2 Part B Qu.14 | Section 2 Part B Qu.16 |
| 10 - The correct supporting documents must be furnished. | 35(2) | Claim form Part F Item 23 (Checklist) | Claim form Part G Item 25 (Checklist) |