VAT: Domestic Reverse Charge

The way VAT is paid between businesses in the construction sector changed.

Companies like yours who are VAT-registered and CIS registered will no longer pay VAT to the majority of their subcontractors. The VAT will only be paid by construction companies to:

• firms who supply only labour and are employment businesses AND
• the merchants and companies that sell building materials without any fix

The payment of money between firms in the construction chain will pass ‘reverse charged’, and no VAT will be paid.

The aim is to collect VAT from the few contractors at the top of the construction tree, who interface with the customers, rather than numerous smaller subcontractors whom HMRC think are less reliable!

Click on the link below to download the eBook

If you would like any further information about VAT: Domestic Revers Charge please contact us by calling 0115 928 3228 or by emailing info@coalesco.co.uk