Sean McGinness (Saffery Champness) considers what’s proposed to curtail VAT evasion in the construction industry.
What’s changing and when?
Section 55A of VATA 1994 gives the Treasury powers to require the recipient of goods or services to account for the VAT under a domestic reverse charge mechanism. This provision was originally drafted to deal with missing trader intra-community (MTIC) fraud but has subsequently been amended and extended to apply to certain services where there is evidence of fraud.
The provisions of s 55A have already been used by the government to introduce a domestic reverse charge mechanism for emissions allowances certain supplies of gas and electricity and certain telecommunication services.
HMRC has been tackling fraud in the construction sector which mainly involves labour only businesses. It has been decided that removing the ability for suppliers to issue VAT invoices to customers in ‘at risk’ supply...
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Sean McGinness (Saffery Champness) considers what’s proposed to curtail VAT evasion in the construction industry.
What’s changing and when?
Section 55A of VATA 1994 gives the Treasury powers to require the recipient of goods or services to account for the VAT under a domestic reverse charge mechanism. This provision was originally drafted to deal with missing trader intra-community (MTIC) fraud but has subsequently been amended and extended to apply to certain services where there is evidence of fraud.
The provisions of s 55A have already been used by the government to introduce a domestic reverse charge mechanism for emissions allowances certain supplies of gas and electricity and certain telecommunication services.
HMRC has been tackling fraud in the construction sector which mainly involves labour only businesses. It has been decided that removing the ability for suppliers to issue VAT invoices to customers in ‘at risk’ supply...
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:
