Domestic Reverse Charge for Construction Services

Domestic Reverse Charge for Construction Services Postponed

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After listening to concerns raised by Construction Industry Representatives the Government has decided to postpone the domestic reverse charge for these services until October of 2020.

It has been agreed that some construction businesses will require more time to implement the VAT domestic reverse charge and that the original date planned (October 1st) is too close to the planned date for Britain leaving the EU.

It has also come to light that some of those sub-contractors using the VAT flat rate scheme would be worse off which will require a review of whether that scheme is still worthwhile for them.

The government have released a policy paper outlining the changes and reasons for postponement. Follow the link below.

Policy paper: Revenue and Customs Brief 10 (2019): domestic reverse charge VAT for construction services – delay in implementation