VAT Reverse Charge for Scaffolding Subcontractors

Does the VAT Reverse Charge apply for the hire, erection and dismantling of scaffolding as a whole on a zero rated residential new build contract? Previous to the VAT Reverse Charge this would have been vatable @ 20% even on a zero rated contract.

Hi,

The guidance states:

For scaffolding supplied for zero-rated construction work the services of erecting and dismantling scaffolding can be zero-rated. Charges for the hire of scaffolding are not covered by the zero rate and are liable to VAT.

The VAT liability of any supply of scaffolding will depend on what is being supplied under the contract in each case.

The hire of goods on its own is not a service that is covered by the reverse charge. Any VAT due on the hire of scaffolding for new build housing work should be accounted for under normal VAT rules.

A contract for the hire, erection and dismantling of scaffolding is within the scope of the Construction Industry Scheme. If the scaffold supplier’s invoice shows separate charges for the hire of scaffold and the cost of the labour to erect and dismantle it, the labour element will be VAT zero-rated as a service carried out in connection with the construction of new build housing.

You can see infortmation here:

Scaffolding on zero-rated new build housing

Thank you.