On 29 April 2019, HM Treasury made regulations introducing a VAT reverse charge on specified construction services. The regulations are effective from 1 October 2019.

The effect of the reverse charge is to impose on the recipient of goods or services (rather than the supplier) the requirement to account for VAT and is intended to combat VAT fraud and evasion in the construction industry.

HMRC has published a guidance note on the reverse charge but has confirmed that this guidance is an overview and that more detailed guidance will follow in the run up to 1 October 2019.

A copy of HMRC’s guidance can be viewed here.

A copy of the Treasury Order can be viewed here.