VAT Place of supply Property M- 741a exception for property/land - domestic reverse charging

Pre Brexit we had reverse charge - no impact if you are full VAT - not exempt or partial exempt Post Brexit if we sell services / products to say France it is in most cases Customer location - export no VAT Now for UK companies providing property services I am asked by SOME clients (landlord agents) to not charge VAT under "domestic reverse charging" A supplier or two of ours seem to do the same to us - UK to UK company - property maintenance services - no VAT charged "domestic reverse charging" Sorry I am confused?

There is more than one "reverse charge" in VAT legislation, think of it like a car, there are petrol cars, electric cars and diesel cars, they are all cars but they are all slightly different in how they work from each other. The reverse charge regarding services from UK to EU or rest of the world, that relates to certain services where the place of supply is shifted to the customer so as to avoid the seller having to register for VAT in the customers Country. The "domestic reverse charge" relates to a UK to UK supply (hence domestic, meaning a UK to UK supply) of certain construction related services, the main trigger is the supplies must fall under CIS (Construction Industry Scheme). So if what you do/sell is not a CIS supply then the domestic reverse charge does not apply to you and you charge UK VAT to your UK customer as normal. But if what you do does fall under CIS, then potentially your sale comes under this domestic reverse charge, it is not as simple as your customer just telling you what to do, you need to get this right as it is you who has to get the VAT treatment right. Very useful flowchart here from HMRC, follow each step to determine if what you do is or is not eligible for domestic reverse charge : https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fassets.publishing.service.gov.uk%2Fmedia%2F636eaebed3bf7f4a4da3cfc2%2FSuppliers_flowchart_-_VAT_domestic_reverse_charge_for_building_and_construction_services.odt&wdOrigin=BROWSELINK Further detailed guidance here : https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services It may be that some jobs you do fall under CIS and domestic reverse charge applies and some other jobs you do, do not fall under CIS/reverse charge. These rules work the other way to, so if you are buy in sub contractor work and that work falls under CIS, then the sub contractor may not charge VAT to you and instead you must "reverse charge", which is where you treat the purchase as a both a purchase but also as a sale to yourself, basically shifting the VAT liability to the customer not the seller.

Hi,

There is a separate reverse charge for supplies made between subcontractors and contractors for building work which covers work under the Construction Industry Scheme. This is separate to the reverse charge for Place of Supply of Services.

Please see the detailed guidance below which explains when the reverse charge for construction should be used:

VAT domestic reverse charge technical guide

Check when you must use the VAT domestic reverse charge for building and construction services

Thank you.