CIS Reverse Charge VAT - If I buy an item from a wholesaler for a project, does the reverse charge apply?
Description
Cause
Resolution

In this scenario the wholesaler is not involved in the supply chain - they are not providing or sourcing subcontractor services. Therefore the reverse charge would not apply to any purchase from the wholesaler.


The reverse charge would come into effect if you used the items purchased from wholesaler, to provide subcontractor services to a main contractor, as long as the items were vatable and within scope of CIS.

[BCB:90:CIS - Sales:ECB]
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