Does Domestic Reverse Charge apply to supply of building materials?

Domestic Reverse Charge applies to supply of building materials if the materials are also being fitted. For example new kitchen units that are supplied and fitted for a contractor in the construction industry* should be VAT rated Domestic Reverse Charge.

A business supplying building materials without any labour should Standard Rate their supply and in fact where the labour part of the supply is less than 5% of the overall supply, Standard Rate can also be applied.

*Bear in mind Domestic Reverse Charge only applies to supply of services from a subcontractor to a construction industry contractor. For more informtion read our blog on Domestic Reverse Charge.