The government has announced that the introduction of the domestic reverse charge for construction services will be delayed for a period of five months.
The change was due to come into effect from 1 October 2020 but has now been pushed back to 1 March 2021 due to the impact that Coronavirus has had on the construction industry.
In addition, there will be an amendment to the original legislation. The change states 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.”
Please head to the gov.uk website to download the full documentation regarding this matter.
If you have any questions or queries about reverse charge VAT, please don’t hesitate to get in touch with PKB and we’ll be more than happy to help.
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