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Document updated/added on 14.09.2020

Topic: VAT

Domestic reverse charge flow chart
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Domestic reverse charge flow chart

Domestic reverse charge flow chart

From 1 March 2021 the VAT treatment of some construction supplies will change. This flow chart will help you determine if you need to apply the new rules.

Reverse charge

With effect from 1 March 2021, the VAT position will change regarding certain construction services. From this date, the customer will account for the VAT by doing a reverse charge entry on their own VAT return. This means that the supplier neither charges VAT nor collects it from the customer.

The only change is that the Box 1 output tax entry moves from the supplier to the customer. This is because the supplier is not charging or receiving VAT from the customer. It is important to understand this point, especially as they might be both buying and selling services captured by the new rules.



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