VATREVCON33800 | How the construction reverse charge works: End users and intermediary suppliers: Sale and leaseback arrangements

A private company might take an interest in land, construct buildings on the site, and then lease the completed buildings back to the owner of the land. This is a type of sale and leaseback arrangement. The private company is the end user for reverse charge purposes. Therefore, normal VAT rules apply to supplies of building and construction services to the private company provided that the company notifies its end user status to its suppliers in writing.