The domestic reverse charge (referred to as the reverse charge) is a major change to the way VAT is collected in the building and construction industry.

The introduction of the domestic reverse charge for construction services will be delayed for a period of 5 months from 1 October 2020 until 1 March 2021, due to the impact of the coronavirus pandemic on the construction sector.

There will also be an amendment to the original legislation, which was laid in April 2019, to make it a requirement that for businesses to be excluded from the reverse charge because they are end users or intermediary suppliers, they must inform their sub-contractors in writing that they are end users or intermediary suppliers.

Full details of the domestic reverse VAT charge for building and construction services and the steps to take to ensure your business is ready for the changes can be found here.