TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Reverse Charge for Mobile Phones & Computer Chips

Notice 735 explains the VAT reverse charge rules, which apply to sales of mobile communications devices and/or computer chips where supplies are:

  • valued at £5,000 and over; and
  • made by one VAT-registered business to another.

Under the reverse charge accounting mechanism, it is the responsibility of the customer, rather than the supplier, to account to HMRC for VAT on supplies of the specified goods.

VAT-registered businesses which sell such goods need to consider whether the reverse charge applies to their transactions. Businesses which purchase goods to which the reverse charge applies must account for VAT on those purchases to HMRC.