VAT Reverse Charge for Building and Construction Services Manual

VATREVCON35200 - How the construction reverse charge works: Schemes: Cash Accounting Scheme

Businesses using the cash accounting scheme (see VCAS) should exclude sales and purchases that the reverse charge applies to from the scheme. These supplies should be accounted for under the reverse charge provisions.

But if a business buys goods and services that the reverse charge applies to and sells them on in such a way that the reverse charge does not apply (e.g. as an intermediary, see VATREVCON33300), then the onward sale should be dealt with under the cash accounting scheme.