Introduction of VAT domestic charge for Building and Construction Services
In June 2020, HMRC announced a delay to the introduction of the new rules for the VAT domestic reverse charge for building and construction services. The new rules will instead come into effect on 1 March 2021. This is to help construction businesses overcome the effects that COVID-19 has had on them and to allow for more time to prepare.
This could affect you and the way you need to account for VAT. The new rules apply to VAT registered businesses supplying certain services in the construction sector and they will change the way VAT is accounted for in specific circumstances. A list of services affected by the domestic reverse charge can be found within the guidance, available online at GOV.UK. Please find links below to the relevant forms which must be completed and returned.