VIT13420 - VAT Input Tax basics: self employed labourers and contractors

A self employed labourer or contractor may buy tools or materials to use for a specific job. You may accept that the VAT incurred is input tax of the business that hired the labourer or contractor provided:

• all the conditions at VIT13400 are satisfied;

and additionally:

• in the case of tools, they become the property of the business;
• in the case of materials, they are incorporated into and become a cost component of the supply by the business to the end customer.