The draft legislation will make supplies of standard or reduced rated construction services (‘specified supplies’) between construction or 
building businesses subject to the domestic reverse charge, meaning that the customer will be liable to account for VAT due, instead of the supplier.
The legislation will not apply to specified supplies made to customers who are consumers, or to those that use specified supplies to make other supplies, such as those selling new houses.
HMRC has explicitly stated that this consultation is part of its attempt to use VAT and other policy options to tackle fraud in the provision of labour in the construction sector.
The consultation can be viewed on the .Gov website and any responses need to be given before 20 July 2018.
VAT is complicated. Bedrock has experienced VAT specialists who can assist on various aspects of VAT. Why not give us a call to discuss how we maybe able to help you or take a look at our VAT pages on this website.
