There will be changes to the way VAT is charged to some construction services, the government has announced.

These changes to the Value Added Tax Act 1996 will come into effect on January 1, 2023.

The government has said that one of the changes will be the clarification of the VAT rate on some services at 20%, such as the construction and repair of separate garages, sheds, garden rooms, beauty salon rooms, etc which is to be used for business purposes.

Another change will be decrease of VAT rate on some services from 20% to 5%, such as installation and servicing of fires/log-burners and chimney sweeping, gutter repairs, boundary wall repairs, and supply by a sub-contractor to a main contractor.

The government has said that the ‘majority’ of services will remain eligible for the reduced tax, including; renovations and extensions, roof and window replacement, repairs and maintenance, installation of kitchens and bathrooms, retaining walls, underpinning and flood prevention.

People with queries can contact Customs and Excise via e-mail at [email protected] or phone 648130.