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Official guidance
VAT Reverse Charge for Building and Construction Services Manual

VATREVCON39000 · How the construction reverse charge works: Adjustments to consideration

  • VATREVCON39100 · Concessions
  • VATREVCON39200 · Credit and debit notes
  • VATREVCON39300 · Bad Debts
  1. How the construction reverse charge works: Adjustments to consideration: contents
  2. How the construction reverse charge works: Adjustments to consideration: Bad Debts

VATREVCON39300 | How the construction reverse charge works: Adjustments to consideration: Bad Debts

From HM Revenue & Customs · VAT Reverse Charge for Building and Construction Services Manual

Bad debt relief does not apply with reverse charge supplies as it is the customer who accounts for the tax.

Where a customer has to adjust input tax recovery because they have not paid part or all of the consideration to their supplier after six months, then they may make a corresponding adjustment reducing the output tax accounted for.

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