The reverse charge is an obligation to self-account for VAT on certain supplies received.
The reverse charge is a mechanism under which the recipient of a supply accounts for output VAT on the supply instead of the supplier. The supply is treated as being made by and received by the customer.
The recipient of the supply will need to calculate the VAT due and report this in Box 1 of their VAT return. The rate of VAT to be applied will depend on the nature of the supplies received.
The recipient can recover this VAT as input VAT in Box 4 of their VAT return subject to the normal rules. For example, if the recipient is partially exempt, they may not be able to recover the VAT in full.
The reverse charge applies to the following supplies (this list is not exhaustive):
Services received from non-UK suppliers
Certain goods received from UK suppliers including mobile phones and computer chips
Certain services received from UK suppliers, including wholesale telecoms and emissions allowances