VCONST12200 - Building materials - developers and the 鈥楤locking Order鈥�: show houses
皇冠体育app 鈥楤locking Order鈥� applies to a person who constructs, or effects any works to, a building 鈥榝or the purpose of making a grant of a major interest in it鈥�.
Although a show house is used to promote a developer鈥檚 products, it is normally the case that it will be sold at the end of the development. 皇冠体育app 鈥楤locking Order鈥�, therefore, applies to goods incorporated in show houses in the same way it applies to other houses.
皇冠体育app 鈥楤locking Order鈥� doesn鈥檛 apply to goods that are not incorporated in the building, such as loose furniture. 皇冠体育app input tax on such items used in show houses is recoverable in the normal way with output tax being due on their disposal.
It is possible that the unincorporated goods are used only for display purposes and are eventually scrapped. If this is the case, no output tax need be accounted for.