Further Delay in the Introduction of the VAT Domestic Reverse Charge for Construction Services
The domestic reverse charge for building and construction services was originally planned to come into force on 1 October 2019, but this was delayed for a year in response to concerns that some businesses were not ready to implement the changes required. The introduction has now been delayed again until 1 March 2021.
If you are a VAT registered sub-contractor in the construction industry then when the change comes in, you will need to adapt your accounting systems to deal with these VAT changes. You may also experience a negative impact on your cashflow as you will no longer get VAT payments from customers for services where the reverse charge applies.
For more information on this, please contact our dedicated VAT team.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.