Website designed by 11 by 11 Ltd

© 2019 Evans Accountants

Evans Accountants is the trading name of David H Evans Ltd, Company registered number: 4666707 Registered in England and Wales. Registered by the Institute of Chartered Accountants in England and Wales to carry out company audit work.

VAT: REVERSE CHARGE FOR BUILDING AND CONSTRUCTION SERVICES

March 5, 2019

 

VAT: reverse charge for building and construction services…

 

From 1 October 2019, the customer rather than the supplier will have to account for VAT due on certain building services when they are reported under CIS regulations.

 

Who is likely to be affected?

 

Businesses involved in buying and selling construction services. It does not apply to zero-rated supplies of construction services.

 

General description of the measure

 

The measure will introduce a VAT reverse charge on certain building and construction services.

 

The measure will, for certain supplies of construction services (‘specified services’), mean that the customer will be liable to account to HMRC for the VAT in respect of those purchases rather than the supplier (the ‘reverse charge’). The reverse charge will apply through the supply chain where payments are required to be reported through the Construction Industry Scheme (CIS) up to the point where the customer receiving the supply is no longer a business that makes supplies of specified services - these businesses are referred to as ‘end users’.

 

The reverse charge will exclude businesses that supply specified services to connected parties within a corporate group structure or with a common interest in land. In these circumstances, the supplies in question will then revert to normal VAT accounting rules.

 

The reverse charge will include goods, where those goods are supplied with the specified services.

 

What Next?

 

We expect more guidance to be released regarding this in the very near future and we will release more detailed information as it becomes available.

 

Please contact us if you have concerns or questions about how this may affect your business.

 

Source information: https://www.gov.uk/government/publications/vat-reverse-charge-for-building-and-construction-services/vat-reverse-charge-for-building-and-construction-services

Please reload

Featured Posts

DON’T LOSE YOUR PERSONAL ALLOWANCE…

March 5, 2019

1/10
Please reload

Recent Posts
Please reload

Archive