Delay in domestic reverse charge VAT for construction services

HMRC have released a brief to advise that they are delaying the implementation of the domestic reverse charge VAT for construction services for a further 5 months until 1 March 2021. This is because of the impact of the coronavirus pandemic on the construction sector.

There will also be an amendment to the original legislation to make it a requirement that for businesses to be excluded from the reverse charge because they are end users or intermediary suppliers, they must inform their sub-contractors in writing that they are end users or intermediary suppliers.

The full brief can be seen in this link:

https://www.gov.uk/government/publications/revenue-and-customs-brief-7-2020-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-7-2020-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm

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