VAT Reverse Charge
February 10th 2021
New VAT rules for construction
In this attached guide we look at the ‘Domestic Reverse Charge’ (DRC) that applies for VAT on construction services from 1 March 2021. This was announced in a consultation in early 2018, with the intention that it should be introduced on 1 October 2019. It was delayed for a year because of Brexit, then delayed another 5 months because of the pandemic. Brexit and the pandemic are still presenting many of the same challenges as they were in 2019 and 2020, but the government is reluctant to delay the introduction of the new rules for a third time.
There are links to HMRC’s detailed website guidance at the end of the attached Guide. Should you have any further queries please contact our VAT expert John Craig.