The responsibility lies with the subcontractor to ensure they are invoicing their customers correctly. However, as a contractor you have a responsibility to tell suppliers that you are VAT and CIS registered and are therefore within the remit of the reverse charge. Furthermore, on a business by business basis there is a possible cash flow benefit to ensuring the reverse charge has been applied where required, and failure of the sub-contractor to correctly apply the reverse charge, could indicate fraudulent activity.
For more information about CIS Reverse Charge VAT, take a look at our common questions guide. [BCB:90:CIS - Sales:ECB][BCB:103:Limitless - 50 Accounts - Construction Industry Scheme:ECB] |