Commentary

735 Domestic reverse charge procedure

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

735 Domestic reverse charge procedure

Part V8 HMRC Notices | Commentary

735
Domestic reverse charge procedure

February 2020

This notice cancels and replaces Notice 735 (April 2015).

1 Overview

1.1 What this notice is about

The VAT reverse charge procedure is an anti-fraud measure designed to counter criminal attacks on the UK VAT system by means of sophisticated fraud.

This notice explains the VAT reverse charge procedure, which applies to the supply and purchase of specified goods and services. It is not to be confused with the reverse charge for intra community acquisitions, details of which are found in VAT Notice 741A 'Place of supply of services'.

For clarity we have inserted 'domestic' into the title of this notice as it's often referred to as such and you should assume any other references to reverse charge in this notice are for the domestic one unless specifically indicated otherwise.

This notice also explains when the receipt of specified goods and services by a non-VAT-registered business makes it liable to be registered for VAT.

This notice assumes that you have a working knowledge of basic VAT principles, as outlined in Notice 700 'The VAT Guide'.

Main narrative treatment—V3.233.

1.2 Who should read this notice

You should read this notice if you're a VAT-registered business and you make supplies or purchases of the specified goods or services set out in section 3.

2 The law

The relevant law relating to the reverse charge on specified goods and services is set out in:

  1.  

    •     VATA 1994, s 55A

  2.  

    •     VATA 1994, ss 65 and 66 (in relation to penalties with regard to the Reverse Charge Sales List (RCSL))

  3.  

    •    

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