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Claiming back VAT under the DIY self-build scheme

Q: My client is an individual that owns a plot of land and wants to construct her own house. I am aware of the DIY scheme for claiming back VAT on building materials but as she has had to source the marble flooring directly from Italy. The Italian supplier insisted they had to charge her Italian VAT on the marble. Can she claim this Italian VAT on her DIY self-build claim form?

A: Yes. Normally non-UK VAT is not claimable from HMRC but, as per section 35(3) of the VAT Act 1994, VAT incurred in other EU member states on eligible building materials can be claimed as part of a DIY self-build claim as long as the VAT was correctly charged under that other EU country's rules. Import VAT on eligible building materials imported from outside the EU is also claimable.