Plant Hire Zero Rated

Question: Is Plant Hire Zero Rated for VAT?

No, the supply of self-drive plant and machinery (including hire) in the United Kingdom is subject to standard-rated Value Added Tax (VAT).

However, the VAT liability of hiring plant and machinery with an operator will depend on the work that the plant or machinery is used for, such as demolition, site clearance, groundworks, etc. It can be zero-rated when supplied during the construction of a zero-rated building.

To qualify for a zero VAT rating, the customer must use the operated plant and machinery for the specified purpose, and the supplier must keep records to demonstrate this.

It is advisable to seek professional advice to determine the correct VAT treatment for a particular supply of plant and machinery.

For more information, visit the gov.uk’s website.