Sean McGinness and Alexis Enright (Saffery Champness) highlight some of the concerns and challenges in implementing the new domestic reverse charge.
The VAT domestic reverse charge (DRC) measure applies where there is a supply of ‘specified services’ that are subject to a positive rate of VAT (currently 5% or 20%). Specified services are services which fall within the scope of the construction industry scheme (CIS) and are defined in the VAT (Section 55A) (Specified Services and Exempted Supplies) Order SI 2019/892 articles 5 and 6. Where services are not specified services they are to be treated as such when they are supplied together with specified services.
The measure does not apply when such services are supplied to an ‘end user’ or ‘intermediary’. An end user in this context is a taxable (VAT registered) person who is a recipient of specified services and uses those services for any...
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Sean McGinness and Alexis Enright (Saffery Champness) highlight some of the concerns and challenges in implementing the new domestic reverse charge.
The VAT domestic reverse charge (DRC) measure applies where there is a supply of ‘specified services’ that are subject to a positive rate of VAT (currently 5% or 20%). Specified services are services which fall within the scope of the construction industry scheme (CIS) and are defined in the VAT (Section 55A) (Specified Services and Exempted Supplies) Order SI 2019/892 articles 5 and 6. Where services are not specified services they are to be treated as such when they are supplied together with specified services.
The measure does not apply when such services are supplied to an ‘end user’ or ‘intermediary’. An end user in this context is a taxable (VAT registered) person who is a recipient of specified services and uses those services for any...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
