VAT on renovation work: 5.5, 10 or 20%
Which rate applies, under what condition, and how to justify it.
5.5% — energy retrofit
Energy performance improvement works and induced works, in a dwelling completed more than two years ago.
10% — ordinary improvement
Improvement, conversion, fitting-out and maintenance works, again in a dwelling over two years old.
20% — everything else
New build, extensions adding more than 10% floor area, large equipment, and any dwelling under two years old.
The certificate
The reduced rate requires a client certificate, to be kept. Without it, YOU owe the VAT difference in an audit — not the client.
Nexap applies these rules automatically from your profile.
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