UK Reverse Charge on Construction Services

As of 1 October 2019, B2B supplies of most building and construction services will no longer require the supplier to charge UK VAT but will be reverse chargeable for the customer (see here for the rules).

The application of the law is complex as it applies to services covered by the UK’s “CIS” scheme for personal and corporate taxation in the construction sector, which has its own complex set of rules as to which activities are caught within its application. We recommend that suppliers or recipients of construction sector services in the UK confirm the application of the new rules to their transactions.

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