VAT – Domestic Reverse Charge for Construction Services: Further Delay to Introduction

HMRC has announced today that it will delay the introduction of the domestic reverse charge for construction services to 1 March 2021. This will no doubt be good news to many in the industry.

The reverse charge was originally meant to be implemented on 1 October 2019, however the introduction was delayed by 12 months after the industry and specialists criticised the lack of guidance from HMRC.  The latest delay is due to the impact of COVID-19 on the construction sector and will allow businesses to recover and give more time to prepare for the changes.

Please contact one of our VAT specialists if you would like further information. We will be providing in-depth guidance on the domestic reverse charge soon.