The VAT reverse charge for construction is effectively an extension of the Construction Industry Scheme (CIS) and applies only to transactions that are reported under CIS and are between VAT-registered contractors and sub-contractors. The scheme means that those supplying construction services to a VAT-registered customer will no longer have to account for the VAT. Instead, the customer will account … Read more
HMRC has announced a five-month delay to the introduction of the VAT reverse charge for construction services, due to the impact of the coronavirus pandemic. The new rules mark a complete overhaul of the way VAT is payable on building and construction invoices, as part of moves to reduce fraud in the sector. Under the … Read more
What is the Construction Industry Scheme? The Construction Industry Scheme (CIS) is a tax deduction scheme which involves tax being deducted at source from payments which relate to construction work. Registering as a Contractor under the scheme You must register as a contractor under the Construction Industry scheme (CIS) if you: Pay subcontractors to do construction work If your business spends … Read more
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