United Kingdom – Reverse Charge Mechanism Extended for the Construction Sector

The reverse charge mechanism is not currently availale for the construction and building services sector. It was due to come into force on 01/10/2019 and has now been postponed until 1st October 2020. This mechanism will not be available for certain services. The following services are excluded:

  • drilling for or extraction of oil or natural gas;
  • architects or land surveyors, or consultants in construction, engineering, interior or exterior design and landscaping;
  • signage and the assembly, installation and repair of signs and advertisements.

This reverse charge mechanism is also not availabe for services provided to businesses other than construction companies, such as a big box retailer whose premises are being improved or any other end customer or building owner. Only supplies between construction companies will be subject to the reverse charge mechanism.

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