Domestic Reverse Charge VAT

Introduction – summary of the provisions
Omnia are committed to keeping ourselves and our clients on the right side of the ever-changing legislation. From 1 March 2021 the domestic VAT reverse charge must be used for most supplies of building and construction services.

The charge applies to standard and reduced-rate VAT services:

  • For individuals or businesses who are registered for VAT in the UK
  • Reported within the Construction Industry Scheme

Current legislation states You must use the reverse charge from 1 March 2021, if you’re VAT registered in the UK, supply building and construction industry services and:

  • your customer is registered for VAT in the UK
  • payment for the supply is reported within the Construction Industry Scheme (CIS)
  • the services you supply are standard or reduced rated
  • you’re not an employment business supplying either staff or workers, or both
  • your customer has not given written confirmation that they are an end user or intermediary supplier

Therefore, if you are an employment business supplying staff or workers domestic reverse charge VAT does not apply.