VAT in Construction

UK VAT legislation relating to buildings and construction is complex and can be hard to understand if you are not experienced in VAT. Incorrectly interpreting the relevant guidance can lead to either an underpayment or overpayment of VAT. Thankfully, The VAT People are here to help you meet your obligations. We have years of experience in managing VAT for the construction and property development sector and recognise the complexity of VAT regulations in this industry, such as a variety of VAT rates (and the conditions attached to these), and the application of mechanisms such as the construction industry reverse charge. With our expertise in VAT management, we’ll ensure VAT compliance is a part of all your business operations.

See below how we can use our specialised knowledge to help your business today, or get in touch with our team directly to get the help you need. Call us on 0161 477 6600 or fill out our contact form here.

Why VAT Compliance is Crucial in the Construction Industry

Failure to comply with VAT rules can lead to a variety of consequences. The application of an incorrect VAT rate can lead to an underpayment of VAT, which, due to the high value of property and associated services can lead to large financial penalties calculated as a percentage of VAT owed with interest also being charged on VAT owed. Conversely, an overpayment of VAT will impact customers, as they are unable to recover incorrectly charged VAT as input tax and can lead to reputational damage. 

Professional VAT Advice in the Construction Sector

The construction industry is fraught with complex VAT rules that can be difficult to interpret. From understanding the reverse charge VAT construction mechanism to knowing when the 5% VAT rate construction applies, the landscape is ever-changing. This is where professional VAT advice comes into play. Our team of experts can help you navigate these complexities, ensuring you remain compliant while optimising your tax position.

Why Choose Us?

With decades of experience in VAT for construction, we bring a depth of expertise that is second to none. We understand the unique challenges you face and offer bespoke solutions that fit your business needs. Our advice is grounded in real-world experience and backed by a track record of success. Contact us today by calling 0161 477 6600 or filling out our contact form here.

Reverse Charge VAT Construction

The reverse charge mechanism, which applies to specific construction services, requires VAT-registered businesses, that provide qualifying construction services to a VAT-registered customer for onward sale, to specify that the supplies are subject to the reverse charge on invoices issued with the customer self-accounting for VAT on its VAT return (this can be recovered as input tax subject to the normal rule). This is particularly relevant in the construction industry and can be complex to navigate without expert advice.