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What is the domestic reverse charge?

The domestic reverse charge is an anti-fraud measure that is designed to limit the opportunity for suppliers to charge VAT on supplies made and then fraudulently fail to remit this VAT to HMRC. The domestic reverse charge is only applied to specified supplies of goods and services that HMRC considers more likely to be subject to fraudulent activities. The domestic reverse charge is not the same as the cross-border reverse charge that applies to services received from overseas vendors ― see the Reverse charge ― buying in services from outside the UK guidance note for more information.

Businesses that make supplies covered by the domestic reverse charge must not charge VAT on the supply made. The customer is required to self-account for any VAT due on the VAT return covering the period in which the supply was made.