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When is VAT recovery on goods incorporated into a building blocked?

VAT on costs incurred for the purpose of making a taxable supply, including a zero-rated supply, can usually be recovered ― see the Input tax ― conditions for recovering VAT guidance note. There is, however, a specific block, sometimes referred to as the builder’s block, on recovery of VAT where all of the following conditions apply:

1. •

   the VAT relates to goods that are not building materials for VAT purposes ― see the ‘What are building materials for VAT purposes?’ section of this guidance note