BESA-JTC VAT reverse charge guidance - The BESA
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BESA-JTC VAT reverse charge guidance

From 1 October 2019 the way VAT is paid between businesses in the construction sector will change. Companies like yours who are VAT registered and CIS registered will no longer pay VAT to the majority of theirsubcontractors. Vat will only be paid by firms in construction to:  firms who supply only labour and are employment businesses AND  the merchants and businesses that sell building materials without any fix.

Published: August 2019
Pages: 16
BESA Product Code: LC 33

From 1 October 2019 the way VAT is paid between businesses in the construction sector will change.
Companies like yours who are VAT registered and CIS registered will no longer pay VAT to the majority of their subcontractors. Vat will only be paid by firms in construction to:
 firms who supply only labour and are employment businesses AND
 the merchants and businesses that sell building materials without any fix.
The payment of money between firms in the construction chain will pass ‘reverse charged’ and no VAT will be paid.
The purpose of the change is to collect VAT from the few contractors at the top of the construction tree who interface with the customers rather than numerous smaller subcontractors whom HMRC think are less reliable!

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