Short answer: The speech (printed p. 43) proposes that for covered construction transactions the buying business accounts for VAT instead of the supplier. Scope is pending; it does not cover every invoice.
Key points
- Aimed at fake invoices and unpaid VAT.
- Buyers with full deduction rights should see no cash cost.
- Private homeowners buying services are not described as in scope.
Budget 2027 measures
Budget 2027Rules pendingProposed reform
VAT reverse charge in construction
For covered construction transactions the buying business, not the supplier, accounts for VAT.
Proposed rules; implementation not confirmed.
Speech printed p. 43 · PDF p. 47