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Countdown for builders
Key points
- Sellers of construction services must ask customers four questions to determine whether the reverse charge applies.
- The customer must tell the services provider whether a particular job is classed as ‘end user’.
- HMRC’s VAT number checking service is a useful resource.
- Ensure invoices are correctly worded to take account of whether the domestic reverse charge applies.
The new domestic reverse charge for the construction industry will be introduced on 1 March 2021. Here are my answers to some practical questions raised by the director of a building company.
Selling construction services: reverse charge or not?
Q: As the majority of our sales are to customers who are not registered for the construction industry scheme (CIS) can we proceed as normal for these sales ie the new rules will not change our existing VAT treatment?
A: This is correct. When you decide whether the domestic reverse...
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