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.