Reverse charge 鈥� buying in services from outside the UK
Value Added Tax
Guidance
This guidance note covers the reverse charge that applies to services that have been bought in from outside the UK.
For an overview of VAT and international services more broadly, see the International services 鈥� overview guidance note.
For in-depth commentary on the legislation and case law in relation to the reverse charge, see De Voil Indirect Tax Service V3.231.
Reverse charge 鈥� the basics
Certain services are subject to a reverse charge when they are bought in from outside the UK. This means that instead of the supplier being required to register and account for VAT on its supply of services as normal, the obligation to account for VAT on the services is actually shifted to the customer. The customer therefore treats the service as if it were supplied both to and by itself. In other words, the customer must 鈥榮elf-account鈥� for the VAT on its purchase.
The customer is still able to recover the VAT that it charges to itself under the reverse charge subject to the
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