When is the VAT reverse charge for construction services being introduced? The VAT domestic reverse charge for construction begins on 1 October 2020.
A domestic reverse VAT charge for building and construction services is being introduced from 1 October 2020. This is a mechanism introduced to tackle VAT fraud in the construction industry by reversing the responsibility to pay VAT from the supplier of construction services to the recipient of construction services.
What is the VAT reverse charge for building & construction ? From the 1st March 2021, the Government is introducing a new VAT reverse charge system that will impact many people working in the UK’s construction industry. This also includes plumbers, gas installers and electricians working as sub-contractors. The scheme is being introduced to combat fraud.
Significant VAT changes for building and construction ? Significant changes are being introduced to the VAT treatment of supplies in the construction industry with effect from 1 October 2019. A domestic “reverse charge” rule is being introduced which will change the person responsible for accounting for VAT in relation to certain supplies of construction services.
If you’re in the Construction Industry Scheme (CIS) and VAT registered, HMRC have recently announced a further delay to the implementation of the new VAT reverse charge rules.. The new rules are now planned to be introduced on 1st March 2021 and will change how you account for VAT. The new rules are complex and you may need to change the way you present information on your invoices …
A domestic “reverse charge” rule is being introduced which will change the person responsible for accounting for VAT in relation to certain supplies of construction services.
What does the VAT reverse charge mean for you? HMRC has suggested the following in their guidance: “We are an end user for the purposes of section 55A VAT Act 1994 reverse charge for building and construction services. Please issue us with a normal VAT invoice, with VAT charged at the appropriate rate. We will not account for the reverse charge.”
Please let the audience know your advice: