- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 15 Jul 2019
VAT reverse charge
Value Added Tax (VAT) is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT-registered. Parties must register if their VAT-able turnover exceeds a minimum threshold in any 12-month period.
From 1 October 2019, a domestic VAT reverse charge will come into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud).
- Construction, alteration, repair, extension, demolition or dismantling of buildings, structures, non-permanent structures, offshore installations, works forming part of land (i.e. walls, runways, docks, railways, pipelines, etc.).
- Installation of systems such as heating, lighting, air-conditioning, ventilation, drainage, and so on.
- Internal cleaning of buildings and structures.
- Painting and decorating.
- Services which are an integral part of preparing or completing those above (e.g. site clearance, excavation, scaffolding erection, landscaping, and so on).
Services and supplies that will be excluded from the reverse charge include:
- Drilling and extraction of oil, natural gas, and minerals.
- Tunnelling and boring for underground works.
- Manufacture of building or engineering components and machinery.
- Signage and advertisements.
- Installation of seating, blinds, shutters, etc.
- Installation of security systems and alarms.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
Our servers have reached another milestone. Why not write an article and be seen by our 6.5 million users.
RSHP celebrates competition win in Paris.
All about approved inspectors.
Whilst apparently confusing, German conservation is actually not that different.
The rise and fall of council housing. Book review.
Drivers of change in global heating markets.
11 interesting facts about the use and nature of the material.
Will politicians ultimately fail to tackle Britain's structural challenges?
How self-certification can save time and money.
CIBSE updates Fire Safety Engineering guidance.
EA finds England's water companies are simply unacceptable.