VAT – postponement of reverse charge on construction services

---

The introduction of the domestic reverse VAT charge for construction services has been postponed from 1 October 2020 to 1 March 2021.

The measure was initially due to commence in October 2019 but has been delayed twice due to Brexit and Coronavirus.

It now comes into effect on 1 March 2021 and means the customer receiving the services will have to pay the VAT due to HMRC instead of paying the supplier.

This will affect you if you supply or receive specific services that are reported under the Construction Industry Scheme. If you require any assistance with planning for the domestic reverse charge or advice regarding how it operates or what services are included, please do not hesitate to contact us.

---