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Domestic Reverse Charge VAT for Construction Services – Delay in Implementation

Posted 05/6/2020

For Businesses that are registered for VAT that are in the construction sector, the introduction of the domestic reverse charge for construction services will be delayed for a period of 5 months from 1 October 2020 until 1 March 2021 due to the impact of the coronavirus pandemic.

There will also be an amendment to the original legislation, which was laid in April 2019, to make it a requirement that for businesses to be excluded from the reverse charge because they are end users or intermediary suppliers, they must inform their sub-contractors in writing that they are end users or intermediary suppliers.

For more information, please see the Government guidance https://www.gov.uk/government/publications/revenue-and-customs-brief-7-2020-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-7-2020-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation

Also follow Hammond McNulty on Linked In for further updates https://www.linkedin.com/company/accountants-congleton-cheshire

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