HMRC have announced a delay to the introduction of the domestic reverse charge (“DRC”) for construction services. The DRC was due to come into effect on 1 October 2020. Due to Covid-19, the implementation date will now be 1 March 2021.
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Jane Stacey, VAT Director, can help you should require advice on DRC or other VAT matters. Jane has considerable experience of advising clients in the real estate which includes property investment, development and construction.
The DRC shifts the responsibility to account for VAT to the recipient of the construction services, rather than the supplier. This is an anti fraud measure. Certain supplies are excluded from the DRC, namely supplies to intermediaries and end users. Those excluded from the DRC will be required to notify their suppliers of their status.
Our VAT and indirect Taxes team are here to provide you with advice on how your business should address VAT. Whether you are a small business trying to develop, or a large-scale business, we can creatively resolve any of the inevitable issues that may arise from time to time.