The Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order, SI 2019/892, introduces a domestic VAT reverse charge for specified business-to-business supplies of construction services from 1 October 2019.
The government announced at Autumn Budget 2017 its intention to legislate for the reverse charge as an anti-fraud measure, following an earlier consultation.
A first draft of the order was published for consultation during June and July 2018, following which it was revised to specify that the reverse charge will only apply to supplies for which payment must be reported for construction industry scheme (CIS) purposes.
HMRC published a guidance note on the new reverse charge in November 2018 (bit.ly/2QM72ry), alongside the final draft order.
The Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order, SI 2019/892, introduces a domestic VAT reverse charge for specified business-to-business supplies of construction services from 1 October 2019.
The government announced at Autumn Budget 2017 its intention to legislate for the reverse charge as an anti-fraud measure, following an earlier consultation.
A first draft of the order was published for consultation during June and July 2018, following which it was revised to specify that the reverse charge will only apply to supplies for which payment must be reported for construction industry scheme (CIS) purposes.
HMRC published a guidance note on the new reverse charge in November 2018 (bit.ly/2QM72ry), alongside the final draft order.
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