The Treasury advises that DIY builders can now file refund claims for VAT electronically and the time limit for filing refund claims is extended from 3 months to 6 months.
The above changes are implemented by the Value Added Tax (Amendments) Regulations 2024 and came into force on 5 December 2023 for claims made on or after that date.
Where a claim relates to a residential conversion from a derelict building or shell, a claimant must provide such evidence to accompany the claim as may be specified in a public notice.
The overall purpose of this measure is to provide individuals building their own home, or converting a non-residential building to their own home, with the option of submitting their DIY housebuilders VAT refund claim digitally. Extending the time limit for making a claim from 3 months to 6 months after completion of a building will allow claimants more time to gather their documents and complete their claim, resulting in fewer omissions or errors.
The digitisation of claims for the scheme should make administration easier for both the Treasury and the claimant. The existing process for making paper-based claims will remain as an option for those that wish to use it.
These Regulations are required under the terms of the Customs and Excise Agreement 1979 to keep the rules and procedures in relation to customs and excise duties in line with those in place in the United Kingdom.
The public notice with directions on the scheme will be updated and published shortly.
For general enquiries please email customs@gov.im or call +44 1624 648130 (Monday to Friday 8:30am to 4:30pm).
