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Construction upheaval
Key points
- The domestic reverse charge for business-to-business supplies in the construction industry takes effect on 1 October 2019.
- The customer receiving construction services will have to account for and pay the VAT due to HMRC.
- The charge does not apply to end-users such as sports clubs and retail stores.
- Some construction operations are excluded for example drilling and carpet fitting.
- Businesses must update their invoicing procedures to apply the charge.
The domestic reverse charge will be a massive change and have a huge impact on the way VAT is collected and accounted for in the building and construction industry. It comes into effect from 1 October 2019 and was introduced by the government to prevent VAT fraud within the construction industry.
The customer receiving the affected construction services will have to account for and pay the VAT due to HMRC instead of the supplier. As well being a major change to the VAT construction process...
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Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
