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Reverse charge
Practical Law UK Glossary 2-107-7163 (Approx. 3 pages)
Glossary
Reverse charge
A method of accounting for value added tax (VAT) that makes the recipient of a supply, rather than the supplier, the person liable to account for VAT to HM Revenue & Customs (HMRC). The reverse charge applies mainly to:
- UK businesses receiving certain taxable supplies of services from overseas. For further information, see Practice note, Cross-border transactions and VAT: place of supply of services, refunds and EC sales lists: The reverse charge.
- UK businesses, registered for VAT and for the Construction Industry Scheme (CIS), which receive certain construction services. For further information, see Practice note, VAT reverse charge on construction services.
For further general information on the reverse charge, see Practice note, VAT: overview: Reverse charge.