Further Delays To The Domestic Reverse Charge VAT For Construction Services
HMRC have today announced a further delay to the implementation of the Domestic Reverse Charge VAT (DRC) for Construction Services until 1 March 2021. The reason for this delay is to limit the impact to the construction sector who is already feeling the effects of the coronavirus pandemic.
HMRC has also added an amendment to the original legislation, which was laid in April 2019. From 1 March 2021, it will now be a requirement that businesses must inform their sub-contractors in writing to be excluded from the reverse charge because if they are end users or intermediary suppliers.
To explain the delay and discuss the amendment, HMRC have published Revenue and Customs Brief 7 (2020) with further information.
If you would like to discuss how the Domestic Reverse Charge VAT delay will affect your VAT returns, please contact our VAT team.