Zero VAT Rating For New-Builds
Sub paragraph 13.8.1 has been amended to include central controls for light, heat and ventilation as examples of articles ‘ordinarily’ incorporated in dwellings. Intelligent lighting systems are also accepted but not the accompanying remote control handsets.
So that’s confirmation that in new build scenarios or in a listed building scenario (where someone applied for Consent prior to March 2012), intelligent Lighting Control systems can be zero-rated. Which is both sensible and good news. Dave also re-inforces the point about physical incorporation. Physical incorporation means the lighting controls need to be physically attached to the building. From paragraph 13.3: “What Incorporated Means” An article is ‘incorporated’ in a building (or its site) when it is fixed in such a way that its fixing or removal would either: – require the use of tools – result in either the need for remedial work to the fabric of the building (or its site), or substantial damage to the goods themselves.
So although it’s rare to see, just make sure your lighting control elements aren’t in a free-standing rack. To qualify as physically incorporated, lighting control systems need to be screwed to the wall.