Reverse charge meaning

This checklist outlines the principal VAT points to review on property transactions. Matters under ‘all property transactions’ should always be tested in every instance, then followed by those linked to the specific deal type (grant of a lease, assignment or surrender of a lease, freehold sale, commercial development, or residential development). Topics listed for the grant, surrender or assignment of a lease, and the sale of freehold land, can also be pertinent to any development transaction. For fuller commentary on the VAT issues signposted in this checklist, refer to the VAT on property subtopic and, in particular, the Practice Notes mentioned in this checklist. Type of property transaction Key VAT considerations All property transactions Is the transaction a transfer of a going concern (TOGC)? If so, there is no supply for VAT purposes and therefore no VAT is payable. For more detail, see Practice Note: VAT—transfers of a going concern involving land and buildings. Where the deal involves a supply of land and...

Genuine Care Homecare Services Ltd v HMRC [2026] UKFTT 235 (TC) It was common ground that the appellant was a UK state‑regulated provider of domiciliary care services exempt from VAT (see Item 9, Group 7, Schedule 9 to the Value Added Tax Act 1994 (VATA 1994) and VAT Notice 701/2). It was likewise accepted that the appellant had told HMRC of its obligation to register for VAT regarding its actual taxable consultancy and training supplies in the care sector, made in the ordinary course of business. The key questions were whether it had made deemed taxable supplies under VATA 1994, s 8, and whether its late appreciation of the implications of making those supplies amounted to a reasonable excuse for failing to notify HMRC in time of its duty to register for VAT...

Court of Justice rules that toll manufacturer is not a fixed establishment for VAT purposes (SC Adient Ltd & Co KG v Agentia Natională de Administrare Fiscală and Agentia Natională de Administrare Fiscală) SC Adient Ltd & Co KG v Agenția Națională de Administrare Fiscală , Case C-533/22 The dispute related to toll manufacturing within a corporate group comprising a German company (Adient DE) and a Romanian company (Adient RO), operating in the production and sale of seats and other motor vehicle components. Adient RO provided manufacturing services, along with ancillary functions such as administering and storing raw materials and finished goods, to Adient DE. Ownership of the inputs and components always remained with Adient DE throughout the process... Adient RO treated these supplies as falling outside Romanian VAT by applying the general B2B place of supply rule in Article 44 of the VAT Directive, with Adient DE accounting for VAT in Germany under the reverse charge mechanism. This treatment was contested by the Romanian tax authorities, who...

Barclays Service Corporation and another v HMRC [2024] UKFTT 785 (TC) Barclays Service Corporation (BSC) provided services to fellow entities within the Barclays Corporate Group, including those in a UK VAT group. A UK branch of BSC was entered on the Companies House register in July 2017. In December 2017, an application was submitted to HMRC seeking to include BSC in the UK VAT group. Had it succeeded, the UK VAT group would have avoided having to account each year, under the reverse charge, for sums running into many millions of pounds. HMRC refused the application in March 2018 on two grounds: BSC was ineligible to join the VAT group as it did not have a UK fixed establishment Even if BSC did have a UK fixed establishment, refusal was required under ‘protection of revenue’ powers The taxpayer appealed to the FTT, where an additional question was raised for determination: whether the UK’s VAT grouping provisions impose a territorial restriction such that...

As further explained in Practice Note: What is VAT?, ordinarily In typical circumstances: the purchaser pays the supplier an amount matching the VAT due on the supply, in accordance with the agreement between them; and the supplier, in turn, is required to account for that VAT to HMRC. The UK reverse charge is a mechanism that shifts the duty to account for VAT to HMRC away from the supplier and onto the recipient, effectively reversing the obligation...

The Building Safety Act 2022 (BSA 2022) case tracker This case tracker sets out notable landlord-and-tenant BSA 2022 decisions delivered by the First-tier Tribunal (Property Chamber) (FTT), the Upper Tribunal (Lands Chamber) (UT), and the courts, which we regard as pertinent to property disputes lawyers. Entries are arranged in reverse chronological order. The tracker uses the following definitions: Relevant defect: anything done or omitted, or used or not used, in connection with ‘relevant works’ that gives rise to a building safety risk (namely the spread of fire or the collapse of part or all of the building) RO: in England, the FTT may make a remediation order (RO) on the application of an ‘interested person’ (for the purposes of ROs this includes the Secretary of State (in England)), the Building Safety Regulator, the local authority, the fire and rescue authority, persons with a legal or equitable interest in the building, and the Homes and Communities Agency...

This Practice Note considers the VAT place of supply rules for property transactions and related services. For guidance on where supplies of other services, or of goods, are treated as made, see Practice Notes: VAT place of supply rules—where is a supply made? and VAT place of supply rules—special rules for services. This Practice Note includes references to EU legislation, guidance and case law. For discussion of the continuing effect of EU law in the UK after the end of the Brexit implementation period on 31 December 2020, see Practice Note: Retained EU law and tax. Unless stated otherwise, all judgments of the EU Court of Justice mentioned in this Practice Note were determined before the end of the Brexit implementation period. Why does this matter? UK VAT is chargeable only when the supply is regarded as made in the UK. If not, it falls outside the scope of UK VAT, though VAT may arise in another country. For most services, the position is determined by where the...

Further Notice to former Tenant or Guarantor of Revised Amount due in Respect of a Fixed Charge (Landlord and Tenant (Covenants) Act 1995, section 17) To: [ insert full name of Tenant ] of [ insert address ] IMPORTANT—BY SENDING THIS NOTICE, THE ISSUER PRESERVES THE ENTITLEMENT TO CLAIM THE SUM(S) STATED FROM YOU NOW OR AT A LATER DATE. THERE MAY BE STEPS AVAILABLE TO SAFEGUARD YOUR POSITION. EXAMINE THIS NOTICE AND ANY NOTES ON THE REVERSE WITH CARE. IF YOU ARE UNSURE WHAT TO DO, OBTAIN PROMPT ADVICE, FOR EXAMPLE FROM A SOLICITOR OR THE CITIZENS ADVICE BUREAU. ACT QUICKLY TO PROTECT YOUR INTERESTS TODAY. 1 This notice is served under section 17 of the Landlord and Tenant (Covenants) Act 1995...

Assignment of a lease The disposal of a lease is ordinarily handled in the same manner as conveying a freehold, and any sum or premium given for the assignment (excluding a reverse premium) falls within the scope of stamp duty land tax (SDLT). However, the incoming tenant’s acceptance of obligations under the lease—such as paying rent or complying with the tenant’s covenants—does not constitute chargeable consideration for SDLT purposes and is disregarded when assessing the tax charge...