Breaking: Delay to Domestic Reverse Charge VAT in Construction Services
HMRC have today announced that the Domestic Reverse Charge VAT for Construction Services will be delayed until 1st October 2020.
Construction businesses who are registered for VAT should be aware that the roll out of the domestic reverse charge has been postponed by 12 months. The move comes as a result of concerns by industry representatives that some businesses in the sector aren't ready to implement the VAT domestic reverse charge. The delay also means that the changes will no longer coincide with Brexit uncertainty.
HMRC have confirmed they remain committed to the changes, and in the coming 12 months will be deploying additional resources to identify and tackle fraud within the sector.
Where organisations have already changed their invoices to meet the needs of the reverse charge, and cannot simply change them back in time, HMRC will take into account the fact that the implementation date has changed. Businesses who have opted for monthly VAT returns ahead of the original implementation date of October 1st can reverse this via the appropriate stagger option on HMRC's website.
The full guidance can be read on the Government's website here.
Written 6 September 2019.