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Reverse charge on construction services

12 June 2018
Issue: 4651 / Categories: News

HMRC consults on legislation for a VAT reverse charge.

HMRC is consulting on the legislation to introduce a VAT reverse charge for construction services.

Under the proposal, supplies of specified standard or reduced-rated construction services between construction or building businesses will be subject to a domestic reverse charge, with the customer liable to account for VAT instead of the supplier. It will include goods supplied with the specified services as part of a single supply.

The reverse charge will not apply to supplies made to customers that are consumers, or to those that use them to make other supplies, such as selling new houses.

HMRC is seeking views on whether the scope and definitions are understood and achieve their objective, and whether its estimates on the impacts of the measure are reasonable.

Comments should be emailed here by 20 July. HMRC intends to publish a final version of the legislation before October.

If passed, it will take effect on 1 October 2019.


Issue: 4651 / Categories: News
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