VAT Reverse Charge Legislation Implementation in Construction Industry

ongoing

The postponed VAT Reverse Charge legislation changes who pays VAT to HMRC, with parties higher in the supply chain (eg contractors) retaining VAT and paying it to HMRC (instead of paying it to eg subcontractors for subcontractors to then pay on to HMRC). One of the main drivers for this legislation, from the government’s point of view, is to reduce tax avoidance by construction parties further down the supply chain.