Article 76 - Construction of new buildings

A. The zero rate shall apply to the Supply of construction Services in relation to new buildings carried out by the Taxable Person. Goods Supplied by a Person making a Supply of construction Services, in the course of providing construction Services for a new building, shall also be zero rated.

B. For the purposes of applying this Article, a 'building' shall mean residential, commercial or industrial buildings, such as a dwelling, offices, factories, workshops, retail stores, multi-storey car parks, power stations, oil refineries, liquefied natural gas stations or oil fields.

C. Construction Services in relation to new buildings shall include the following:

1. Construction works,
2. Site clearance Services,
3. A new extension to an existing building.
4. Services provided by engineers and surveyors and similar Services of a supervisory nature.

D. Construction of buildings shall not include the following activities:

1. Demolition of existing buildings on the land on which the new building is to be constructed.
2. Architects' and interior design fees.
3. Restoration works.

E. Goods supplied by a Taxable Person as part of the provision of construction Services in relation to a new building shall include those used, installed or incorporated into the building or its location, and shall include:

1. Building materials.

2. Materials necessary to construct specialised raised flooring for computer server rooms.

3. Fixtures and equipment to the extent that such fixtures and equipment are permanently affixed to the building and can not be removed without causing damage to the building or the plant and equipment.

4. Goods supplied to conduct civil engineering works necessary for the development of the building including:

a) Sewerage systems.
b) Piping.
c) Roads and paths necessary for the proper use and enjoyment of the building.
d) Car parking for use by the occupants of the building and visitors.

5. Goods supplied to connect the building to a water supply and Telecommunications Services.

6. Photovoltaic cells and related equipment designed to produce electricity and hot water for the building.

F. The Supply of Goods provided in the course of construction Services in relation to a new building shall not include the Supply of fixtures and equipment not permanently affixed to the building and which can be removed without damage to the building or fixtures and equipment, including:

1. Furniture that is not affixed to the building.
2. Goods supplied for landscaping purposes.
3. Swimming pools.
4. Decorative lighting.
5. Paintings, murals and other artwork.
6. Carpets.
7. Moveable partitions.

G. A Taxable Person who makes Taxable Supplies subject to the zero rate, and other activities subject to a different Tax treatment in the course of executing a particular contract, shall apportion the contract price to determine the price of each of the parts of the contract subject to a different Tax treatment, provided that each part does not fall below the fair Market Value for the Goods or Services supplied.

H. The zero rate shall not apply to Goods or Services supplied after the building has been completed.