VAT
VAT is a tax on consumption in the UK. It is a tax on the supply of goods or services; unlike income tax or corporation tax, it is not related to business profits.
Supplies of goods or services in construction and property transactions can be taxable (at 20%, 5% or 0%), exempt or outside the scope of VAT. On expensive property-related transactions the addition or otherwise of VAT can have a significant impact.
This section is maintained by Julian Potts of Landmark PT.
Related content
RICS journal article: Managing building and construction service DRC
Feature: Supply chains: changing VAT