The new United Kingdom (UK) Value Added Tax (VAT) domestic reverse charge is expected to be introduced with effect from 1 March 2021 (following two delays, most recently as part of HM Revenue & Custom’s (HMRC) COVID-19 measures). The reverse charge will apply to supplies of construction services between VAT-registered subcontractors and contractors, which must be reported for Construction Industry Scheme (CIS) purposes.
The aim of the new legislation is to tackle perceived VAT fraud in the construction sector known as “missing trader fraud,” whereby VAT is charged by the supplier but is not remitted to HMRC.
Source EY
Latest Posts in "United Kingdom"
- KFC Dip Pots Are Separate Zero-Rated Supply, Upper Tribunal Rules
- HMRC Policy paper – Revenue and Customs Brief 5 (2026): Temporary reduced rate of VAT for children’s meals, tickets and family attractions
- Plastic Packaging Tax (PPT): consultation on potential certification for mechanically recycled plastic packaging
- UK: IMF Signals VAT Base Broadening as Key Fiscal Option
- UK Consults on Mandatory Certification for Recycled Plastic Packaging Tax Claims
