VAT Property Solutions
Note: 38
Barter transactions - Where land is transferred at no cost, or reduced cost in return for the tranferee undertaking to carry out certain construction works, there will be two supplies for VAT purposes: the supply of the land; and the supply of the construction services. The value of the construction services will usually be equivalent to the actual value of the land less any additional payment. The value of the land will be the value of the construction services plus any payment. Consult the VAT Decision Tree for the VAT treatment in each instance.
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