VAT reverse charge for construction services

9th September 2019

HMRC have announced that the proposed start date for a VAT reverse charge on construction services has been delayed until 1 October 2020.

The new rules, when implemented, are intended to reduce VAT fraud within the construction supply chain. The rules will mean that in many instances VAT will not be charged by subcontractors. Instead, VAT is only charged further up the supply chain and where there is an `end-user`.

An `end-user` will usually be a member of the public, or a trader who is not VAT and not CIS registered, or a landlord, or an NHS Trust, Housing Association or Local Authority. 

If you require any further information, please do not hesitate to contact our team. 


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