VAT reverse charge for building and construction services

HMRC has issued guidance for its new VAT domestic reverse charge regime for the construction industry.

The introduction of a reverse charge does not change the liability of the supply of the specified services. What does change is the way in which the VAT on those supplies is accounted for. Rather than the supplier charging and accounting for the VAT, the recipient of those supplies accounts for the VAT.

The guidance confirms that the reverse charge will come into force on 1 October 2019 and will apply to supplies of specified services from that date. This includes the goods supplied with those services.

We will be providing further help and information on the reverse charge to clients in the construction industry. As always, please do contact us if you have any concerns.