SI 2019/892 - The Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2019
Released 30 April 2019
SI 2019/892 specifies construction services as subject to the ‘reverse charge’ under VATA 1994, s. 55A from 1 October 2019.
The Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2019 applies a VAT reverse charge to construction services. As a general rule, it is the supplier of goods or services who is required to account for VAT on those supplies. However, the Value Added Tax Act 1994, s. 55A requires the recipient, not the supplier, to account for and pay tax on the supply of any goods and services which are of a description specified in an order made by the Treasury for that purpose. This accounting requirement is commonly referred to as the “reverse charge”. The order comes into force with effect in relation to supplies made on or after 1 October 2019.