Delay announced in VAT Domestic Reverse Charge changes - Wright Vigar
 In Advice, Blog, News, Tax Tips, Treasury Updates

HMRC have announced that the introduction of the domestic reverse charge for construction services will be delayed for a period of 12 months until 1 October 2020.

This follows concerns from industry representatives that some businesses in the construction sector were not ready to implement the reverse charge on 1 October 2019.

For those businesses that have taken steps to change their accounting/invoicing systems in preparation for the 1 October 2019, it will mean that they will have to revert back to the status quo.

HMRC have acknowledged that some businesses may not be able to easily change them back in time and where genuine errors occur, they will take into account the fact that the implementation date has changed.

Some businesses may have also changed their VAT return periods to monthly ahead of the 1 October 2019 implementation date. They will need to go back on the HMRC website and change the periods back to quarterly.

No doubt HMRC will provide further information/guidance throughout the next year and as they do we will keep you up to date with all the developments.

If you would like any advice or assistance on this matter please contact David Barraclough, VAT Consultant by emailing him or call on 01522 531341.

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