This paragraph examines measures in place to combat so-called 'missing trader fraud' specifically in the construction sector, which came in to force from 1 March 2021. The reverse charge in connection with missing trader fraud and other anti-fraud reverse charge measures are covered generally in V3.233. Broadly, such fraud involves a 'missing' or 'defaulting' trader deliberately failing to pay its VAT liability for taxable supplies made in the UK. Frequently, such fraud involves supplies passing through a number of intermediary traders before either being sold to a UK end user of a customer outside the UK1.
Background to domestic reverse charge for construction services
In the Autumn 2017 Budget, the Government announced that it would publish a technical consultation on draft legislation for a VAT reverse charge on construction services in Spring 2018. The consultation2 was published on 7 June 2018 and ran until 20 July 2018. A final draft of the legislation and guidance was published on 7 November 20183, and the legislation itself (SI 2019/892)
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:16