Updated Guidance for VAT Domestic Reverse Charge
HMRC has updated its technical guidance for VAT-registered businesses in the construction industry.
The changes include new guidance on VAT treatment of the supply of scaffolding and amended guidance on several VAT aspects of supplies within the construction industry – e.g., exemptions from domestic reverse charge and labour only contracts.
There is a new section on: the supply of scaffolding services, details of the exemption for end-users and intermediary suppliers, advice on determining the difference between labour-only supplies of construction services and supplies of workers by employment businesses and information on how to account for VAT where construction services are supplied/received with other goods or services, plus how non-established taxable persons should account for VAT on construction services.
If any of the issues listed affect your business, you should read the updated section of HMRC’s guidance. Visit the Gov.uk site guidance: VAT Domestic Reverse Charge Technical Guide
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