Since 1 June, we now have a new more formal certifi cation procedure whereby a seller’s option to tax will only be disapplied if the buyer certifi es that the building is intended (wholly or partly) for residential use, or a relevant residential purpose (eg old age home). That certifi cate has to be given before the price for the sale is fi xed (usually on exchange of contracts, but this could be heads of terms). The seller can agree to a later certifi cate provided this is before the seller makes the supply. The certifi cate can also be given by an intermediary buyer who intends to sell on to a subsequent buyer, provided the intermediary has himself received a certifi cate from his buyer stipulating a qualifying intention. The certifi cate will confi rm the buyer’s intention in each case, and the extent of the building affected. The certifi cate must be in the prescribed form. Accordingly, buyers should ensure that they are complying with this certifi cation process (and the timing) to avoid having to pay VAT.© Practical Lawyer