Reverse charge VAT for construction services delayed
The government have announced that the introduction of the domestic reverse charge for construction services will be delayed for a period of 12 months until 1st October 2020. Under current rules, the supplier of construction services collects the VAT from their customer and accounts for it in Box 1 of their relevant VAT return.
With effect from 1st October 2020 the supplier of construction services will invoice their customer without charging VAT. The customer will make the Box 1 entry instead on their own VAT return (and also reclaim the VAT in Box 4 of their return). We will provide further details of the new procedure leading up to the implementation date.
