HMRC has issued the consultation document ‘Draft legislation: VAT reverse charge for construction services’. HMRC proposes that, as an anti-fraud measure, supplies of standard or reduced rated construction services (‘specified supplies’) between construction or building businesses will be subject to a domestic VAT reverse charge, with the recipient business liable to account for VAT instead of the supplier. The reverse charge would not apply to specified supplies made to customers who are final consumers of the supplies. Responses are required by 20 July 2018.
