You can apply for a GST refund on building materials if you're building a new home as a DIY builder.
Eligibility for reclaiming GST
If you build a dwelling as a DIY project, you can reclaim GST on certain goods and materials used in its construction. You can't reclaim GST on alterations, conversions, improvements and extensions to existing buildings.
You can apply for a GST refund on building materials and goods if you:
- build the home with planning permission (lawfully)
- use it as a home for you or a member of your family (it must not be used for business purposes)
- have paid GST when you bought or imported the goods
- incorporated the goods or materials into the home
Materials and goods that qualify for a GST refund
You can reclaim GST on:
- builders' hardware (eg door handles, door hinges, bolts and latches)
- sanitary ware
- fixtures and building materials which are incorporated into the house
You can't reclaim GST on:
- finished or prefabricated furniture (other than furniture designed to be fitted in kitchens)
- materials used to construct fitted furniture (other than kitchen furniture)
- domestic electrical or gas appliances (other than those designed to provide space heating or water heating)
- carpets or carpeting material
You cannot claim for GST charged on any services provided to you.
Sale of land to a DIY home builder
You can apply for a refund on the GST for the purchase of land if the following conditions have been met:
- planning permission must have been granted prior to the date of sale for a dwelling to be constructed on the land
- you must have registered for the DIY home builders scheme prior to the date of sale
- you must be eligible to a refund of GST under that scheme.
Reclaiming the GST
Step 1: Register to reclaim GST
Apply to register for GST as a DIY home builder before the construction work starts.
Complete the registration form and email it to the
GST department at Revenue Jersey.
Make sure your keep all your paperwork as you will need it when you make your claim for the refund of GST.
Register as a DIY home builder
Step 2: Claim for a refund
If your application to register as a DIY home builder has been successful you will be sent a DIY home builder refund claim form along with more information to help you, in advance of making your claim.
Time limit of claims
You must make your claim within the approved time.
GST won't be refunded if a claim has not been made within 36 months after the day when the supply or importation occurred.
The last claim has to be made within 12 months of the completion date.
Evidence to support claims
When you submit your claim form you must be able to provide evidence to support your claim. Make sure you present everything clearly and correctly.
Any false claims will be liable for a penalty.