Commentary

V3.234 Measures to combat other types of fraud

Part V3 Supplies, acquisitions and imports

V3.234 Measures to combat other types of fraud

V3.234 Measures to combat other types of fraud

Supplies of gold

For a form of reverse charge in which the liability to account for VAT on gold is moved from the supplier to the recipient, see V5.143.

Supplies in the construction sector (with effect from 1 March 2021)

Background to domestic reverse charge for construction services

In the Autumn 2017 Budget, the Government announced that it would publish a technical consultation on draft legislation for a VAT reverse charge on construction services in Spring 2018. The consultation1 was published on 7 June 2018 and ran until 20 July 2018. A final draft of the legislation and guidance was published on 7 November 20182, and the legislation itself (Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2019 (SI 2019/892)) was made on 29 April 2019. The measure applies the reverse charge so as to shift responsibility for paying the VAT along the supply chain to remove the opportunity for it to be stolen. It was originally scheduled to take effect from 1 October 2019, however there were serious concerns over the preparedness of the construction industry for the change3 and as a consequence HMRC announced in Revenue and Customs Brief 10/194 that the implementation would be delayed for a further 12 months to help businesses more time to prepare (and to avoid the changes coinciding with Brexit, which at the time was scheduled to take place on 31 October 2019), see V1.301. The law was subsequently changed to accommodate this

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