Some construction contracts include the supply and installation of fittings including floor coverings that are not stuck down over their entire surfaces and light fittings that are not recessed.
Are these supplies and fittings subject to the reverse charge?
No. Supply and installation of fittings are not services within the scope of the reverse charge legislation. A supplier should issue a separate VAT invoice charging VAT at 23% for the element of the contract which relates to supply and installation of fittings.
Other examples of fittings include:
Blinds (most types)
Clocks including time clocks such as flexitime equipment
Cooker hoods
Curtains
Electric and gas fires
Exhibition stands
Fitted carpets and lino, other than floor covering stuck down over its entire surface
Freestanding shop counters
Kitchen cookers
Lighting other than recessed lighting
Mirrors
Most shelving
Refrigeration units, including deep freezes
Safes (certain)
Seating, including cinema and church seating whether or not secured to the floor
Snooker tables and other games tables
Washing machines and dishwashers, including plumbed-in machines.
Professionals within the construction industry?
Reverse charge rules do not apply to payments to architects, quantity surveyors, engineers or design teams.
Non Construction Industry Services.
Sub-contractors who also supply services to schools outside of the construction industry will continue to account for VAT on these services as before. These services are not within RCT and therefore the reverse charge does not apply.