VAT Reverse Charge for Building and Construction Services Manual

VATREVCON34000 - How the construction reverse charge works: VAT registration threshold

With other domestic reverse charges, for example for mobile phones and computer chips, when a business buys specified supplies, the value of these supplies must be taken into account (subject to de minimis limits) when calculating whether or not the business meets or exceeds the VAT registration threshold. This does not apply to the construction reverse charge. Instead, if a business is not registered for VAT and buys specified services of building and construction services as set out in VATREVCON22000, the value of these supplies will not be counted towards the VAT registration threshold. Only supplies that they make will be counted towards the threshold. This is provided for in SI 2019/892 art. 10.