Cases - Beco Products Ltd v Customs & Excise Commissioners

Record details

Name
Beco Products Ltd v Customs & Excise Commissioners
Date
[2004]
Citation
VAT decision 18638
Legislation
Keywords
Construction contracts - value added tax - reduced rate of tax - energy saving materials - installation of energy saving blocks - dominant purpose of contract - whether supply of energy saving materials separate to contract for installation necessary to benefit from reduction - whether reduced rate applicable to entire contract
Summary

It was held that the installation of energy saving blocks in the course of the alteration or extension of an existing building would not benefit from the 5% rate of VAT. Where the blocks were 'installed as part of an entire contract for construction, the dominant purpose of the contract will be the building that results. The dominant purpose will not be the insulation provided by the system...'. The VAT rate was therefore considered to follow the VAT liability of the overall building works in question, which, in this case, was 17.5%.