VAT: DOMESTIC REVERSE CHARGE FOR BUILDING AND CONSTRUCTION SERVICES

VAT: DOMESTIC REVERSE CHARGE FOR BUILDING AND CONSTRUCTION SERVICES

The domestic reverse charge, commonly referred to as the reverse charge, is a major change to the way VAT is collected in the building and construction industry and will affect both suppliers and customers that are both VAT and CIS registered.

The changes come into effect on 1 March 2021 and means the supplier will no longer charge VAT on its specified supplies. The customer receiving the supplies will be responsible for accounting for and paying any VAT due to HMRC. View our Domestic Reverse Charge FAQ’s for further information.