VAT on Construction Industry Scheme supplies
Since this blog was published, the UK government have deferred this change twice. The chnag ein VAT treatment is now scheduled to occur in 2021.
From 1 October 2019 there is a significant change taking place in the way VAT is charged on supplies made which fall under the Construction Industry Scheme (CIS) .
VAT Registered suppliers, making supplies covered by the CIS scheme, will not charge VAT on their invoices. The recipient of the invoices then has to undertake a ‘reverse charge’ for VAT purposes. This leaves the purchaser in the same position as if the supplier had in fact charged VAT on their invoice.
The purpose of the charge is to tackle tax evasion, whereby suppliers charge VAT on their invoices, but do not pay over the VAT they collect to HM Revenue and Customs.
For further details relating ti the VAT change, contact Shacklefords Chartered Accountants either by email (firstname.lastname@example.org) or by telephone (0121 448 7466).