- HMRC updated VAT Notice 735: Domestic Reverse Charge procedure
- The Notice explains how the Domestic Reverse Charge (DRC) applies to construction services between businesses.
- The recipient of the supply is responsible for paying VAT to HMRC, not the supplier.
- The customer can reclaim the VAT under normal VAT rules.
- The DRC applies throughout the supply chain until the customer is not a construction services business.
- The update includes information on recipients of DRC supplies that are not VAT registered.
- Businesses that buy specified goods or services may be liable for VAT registration based on the value of the DRC.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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