- HMRC published a manual on the VAT reverse charge for building and construction services on 2 April 2025.
- The VAT reverse charge aims to prevent fraud by shifting VAT accounting responsibility from the supplier to the recipient.
- It applies to VAT registered businesses in the UK involved in the Construction Industry Scheme.
- The reverse charge is relevant for services like construction, repair, demolition, and internal fit-out.
- Professional services such as architects and surveyors are excluded from the reverse charge.
- Recipients can be exempt as ‘end users’ if they meet specific criteria.
- The manual provides guidance on issues like snagging, non-UK suppliers, and VAT registration thresholds.
- The manual includes hyperlinks to additional guidance but is not exhaustive.
Source: mills-reeve.com
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.
