Reverse Charge On Construction Services

REVERSE CHARGE ON CONSTRUCTION SERVICES

HMRC is introducing a VAT reverse charge on certain building and construction services, which will come into effect on 1 October 2019.

My understanding is if the supplies received by the Council are governed by CIS regulations, and liable to VAT at the standard rate, then it will be obliged to treat them under the terms of the new Statutory Instrument and will need to account for output tax in Box 1 of the VAT Return, recovering it in Box 4.

Does this apply to all CIS transactions, if not, what specific areas would impact on Local Authorities, and what are the circumstances when reverse charge on construction services would apply?
Parents

  • [url=https://www.gov.uk/government/publications/vat-reverse-charge-for-building-and-construction-services-guidance-note/guidance-note#annexe1]HMRC Guidance[/url]


    This may also be helpful (I hope the link works). HMRC provide a useful flow chart in Appendix 1.

    I understand that "notification" of end user status is done in an informal way i.e. there is not a specific certificate or notice to give to a contractor.
Reply

  • [url=https://www.gov.uk/government/publications/vat-reverse-charge-for-building-and-construction-services-guidance-note/guidance-note#annexe1]HMRC Guidance[/url]


    This may also be helpful (I hope the link works). HMRC provide a useful flow chart in Appendix 1.

    I understand that "notification" of end user status is done in an informal way i.e. there is not a specific certificate or notice to give to a contractor.
Children
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