Reverse charge for traders in renewable energy certificates

The government has laid regulations introducing a domestic reverse charge for supplies of gas and electricity certificates in the UK. This is to counter the threat of missing trader intra-community fraud when these certificates are traded. 

The charge took effect from 14 June 2019. Given the difficulties it may cause as businesses become accustomed to it, HMRC says it will take a ‘light touch’ approach in dealing with errors in the first six months of operation, as long as businesses have made reasonable efforts to comply with the new rules.

More information on the working of the charge is in Revenue and Customs Brief 4/2019.