Construction Industry Domestic Reverse Charge VAT
The introduction of Domestic Reverse Charge for construction services comes into force on 1st March 2021.
This was previously planned for October 2020 but was delayed due to the impact of the coronavirus pandemic on the construction industry.
From 1st March, anyone within the construction industry receiving the supply of construction services will pay the VAT directly to HMRC rather than paying it to their supplier. HMRC hope that this will have a significant impact on VAT compliance.
According to the HMRC brief, there will also be an amendment to the original legislation 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."
