Practical points on the construction industry domestic reverse charge

The new domestic reverse charge for the construction industry will be introduced on 1 March 2021. Here are my answers to some practical questions raised by the director of a building company.

Selling construction services: reverse charge or not?

Q: As the majority of our sales are to customers who are not registered for the construction industry scheme (CIS) can we proceed as normal for these sales ie the new rules will not change our existing VAT treatment?

A: This is correct. When you decide whether the domestic reverse charge apples to your sales you need to consider four questions. If a customer is not registered for CIS you do not need to consider the other three questions and you will charge VAT on your sales invoices as normal and declare this tax in box 1 of your return.

Q: You mention four...