RCB/7/20 Domestic reverse charge VAT for construction services – delay in implementation
Revenue & Customs Brief, Issue 7. 5 June 2020
Purpose of this brief
This brief explains that the introduction of the domestic reverse charge for construction services will be delayed for a period of 5 months from 1 October 2020 until 1 March 2021 due to the impact of the coronavirus pandemic on the construction sector.
There will also be an amendment to the original legislation, which was laid in April 2019, 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.
Who needs to read this
Businesses registered for VAT that are in the construction sector.
A domestic reverse charge means the UK customer who gets supplies of construction services