Helping construction businesses and suppliers deal with the new reverse charge VAT rules
More than 150,000 businesses connected to the construction industry now need to fundamentally change the way they manage their VAT processes.
The reverse charge applies to business-to-business supplies where both businesses are registered for VAT, there is an onward supply of construction and the parties are subject to the Construction Industry Scheme (CIS).
When the Reverse Charge is applied, the recipient of the goods or services makes the declaration of both their purchase (input VAT) and the supplier’s sale (output VAT) in their VAT return. As such, the two entries cancel each other from a cash payment perspective in the same return.
We can provide you with the latest advice on reverse charge VAT and ensure that your accounting systems and software can deal with the reverse charge.