VAT REVERSE CHARGE EXPLAINED UK 2021 - Makes Sense accounts in UK

Описание: The #VAT reverse charge is a change to the way #VAT is accounted for in certain types of transactions within the #UK construction industry. It came into effect on 1st March 2021 and applies to supplies of construction services between #VAT-registered businesses where the recipient of the service is responsible for accounting for the #VAT, rather than the supplier.

Under the reverse charge, the supplier of the construction services will issue an invoice without VAT, and the recipient of the service will need to account for the #VAT due on the supply as both the input and output tax on their VAT return. The recipient can reclaim the #VAT as input #tax subject to the normal rules.

The reverse charge applies to a wide range of construction services including construction, alteration, repair, demolition, installation of heating, ventilation, air conditioning, and more. However, it does not apply to supplies made to end-users, such as property developers or private individuals.

The aim of the reverse charge is to combat #VAT fraud in the construction industry. By shifting the responsibility of accounting for #VAT to the recipient, it aims to prevent suppliers from charging VAT on their services and then disappearing without paying it to #HMRC.

If you are involved in the construction industry, it is important to familiarize yourself with the reverse charge rules and ensure that your invoicing and accounting systems are updated to reflect the changes.

#VAT #REVERSE #CHARGE #EXPLAINED #uk2021

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