VAT News

Update: Provision of Temporary Buildings – Court of Session ruling in Sibcas


In Sibcas, the Court of Session has ruled that the provision of temporary buildings is subject to VAT.  This decision overrules the Upper Tier Tribunal’s decision from last year (details of which can be found in our previous news article here).

The case relates to the VAT treatment applied to supplies of prefabricated units to a school, whereby the taxpayer had treated the supply of the units as subject to VAT on the basis that it was a supply of facilities that fell short of being “the leasing or letting of immovable property”.

Whilst the First Tier Tribunal and Upper Tribunal focused heavily on the characteristics of the building and whether it was indeed “immovable” or not, the Court of Session considered that not enough attention had been paid to the actual contract.  The contract highlighted that the supply was for a limited time only made by a company specialising in temporary accommodation, and despite the fact that the temporary school may indeed be seen as a building, this was not enough to fall within a supply of property for VAT purposes.  Due to the attention to very specific detail within the contract this VAT treatment may not apply to every supply of temporary buildings but where the circumstances replicate those of Sibcas standard rating may apply.

If you would like to discuss the impact this case has or may have upon your business, please get in touch with a member of the Centurion VAT team on 01633 415390 or

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