VAT on installation of your own building materials
Buying your own materials from China does not automatically reduce VAT on installation. Ordinary building work is normally charged at 20%; qualifying project relief may change the treatment of labour and contractor-supplied materials. Check import VAT separately. Cambridge China Bridge can help organise the China sourcing documents.
Start with the work, not where materials came from
HMRC says construction and work to an existing building are normally standard-rated. For a VAT-registered installer quoting ordinary home improvement work, budget for 20% VAT on installation unless a specific relief applies. Supplying your own tiles or windows does not, by itself, establish that relief.
Before ordering, give the installer the project description and material schedule. Ask for a written quotation stating what they will install, what they will supply themselves, and the VAT treatment assumed. Keep delivery, storage, preparation and making good within the agreed scope.
Compare labour-only with supply-and-fit
With labour-only work, you buy the main materials separately and ask the contractor to install them. With supply-and-fit, the contractor supplies and installs them. HMRC confirms that building materials supplied and installed by a contractor on a qualifying new property can share the zero rating of the construction services.
Request quotations against the same drawings, specifications and finished result. Compare the total payable, including your separately bought materials and their landed cost, rather than comparing the installation figures alone. Use our landed price guide for the purchasing side. For advertised material prices, see our guide to VAT-exclusive website pricing.
| Arrangement | Materials purchasing | Questions for the installer |
|---|---|---|
| Labour-only | You buy the agreed materials separately | What installation work, consumables and making good are included? |
| Supply-and-fit | The contractor buys and installs the agreed materials | Which materials are included, and what VAT treatment has been assumed? |
Check project relief before accepting the quote
Work on a new house or flat may qualify for zero rating, subject to the conditions. Some qualifying building work may instead attract the reduced rate of 5%. These are project-specific treatments, not a discount obtained by buying materials in China.
Ask the contractor or VAT adviser to check the relevant route: a qualifying new dwelling, conversion or empty-property renovation. Provide the planning documents, existing and proposed use, occupancy history and detailed work schedule. Ask them to identify which work and materials qualify rather than assuming the whole project receives the same treatment.
Keep import VAT and refund checks separate
VAT on goods sent from abroad follows the VAT rate applicable to those goods. An installation quotation using project relief is not evidence that your separately imported materials receive that treatment. Use our UK import duty and VAT guide for the border-cost calculation.
For an eligible self-build conversion, HMRC allows refunds on qualifying building materials and conversion services. Check your eligibility and individual purchases separately from the contractor's invoice rate. Our self-build import VAT guide covers the imported-materials question; keep purchase invoices and shipping records together for that review.
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Agree the handover before paying the factory
Ask the installer to approve dimensions, quantities, fittings and installation instructions before the China order is placed. Agree who handles shortages, damaged goods, unsuitable components and replacement deliveries. For several suppliers, use our home renovation consolidation guide to plan the shipment. For exchanges at a different price, see our guide to VAT on different-value replacements.
Keep the China purchasing file and UK installation quotation in the same project folder, with a clear record of who supplies each item. Cambridge China Bridge's own staff in China can coordinate supplier specifications and shipment documents. Ask your contractor or VAT adviser to confirm the UK installation VAT treatment before you commit.
Frequently asked questions
Is labour-only building work VAT-free?
No automatic relief applies because the contract is labour-only. Ordinary building work is normally standard-rated at 20%; ask whether the actual project and work qualify for a different treatment.
Can supply-and-fit have different VAT from buying materials myself?
Yes. On a qualifying new property, building materials supplied and installed by the contractor can share the services' zero rating. Compare that quotation with your separate purchasing and installation costs.
Does reduced VAT on installation reduce import VAT?
Do not assume it does. VAT on imported goods follows the rate applicable to the goods. Check the materials purchase and the UK installation service separately.
What should I get in writing before ordering from China?
Get the installer's approved specification, installation scope, VAT assumption and responsibility for missing or unsuitable materials. Keep the purchasing invoices and shipping records with the project documents.