Key points
- Since 1 January 2021 for a GB business all arrivals of goods from anywhere in the world are imports.
- Added complication when buying goods worth less than £135 from overseas.
- Reverse charge applies to services purchased from abroad.
- Main purpose of the domestic reverse charge is to counter fraud.
It is a strange quirk of working in tax that a topic can sit and fester in the wilderness for many years without rearing its head and then it suddenly seems to crop up everywhere. As Oscar Wilde might say: ‘Sometimes we can spend years without living at all and suddenly our whole life is concentrated in a single moment.’
A case in point is the ‘reverse charge’ in the world of VAT which in 2021 has been extended to three different situations. The latest extension was the new domestic reverse charge (DRC) for...