Last week it was announced that the Domestic Reverse Charge will now go live on March 1st, 2021.
Our work on a module to accommodate this new legislation was originally complete in September 2019, as we prepared for its roll-out in October 2019, however the COVID-19 pandemic has now pushed it back further.
HMRC guidance now reads:
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.
It comes into effect on 1 March 2021 and means the customer receiving the service will have to pay the VAT due to HMRC instead of paying the supplier.
It will only apply to individuals or businesses registered for VAT in the UK (although it will not apply to consumers).
This will affect you if you supply or receive specified services that are reported under the Construction Industry Scheme (CIS).
We will be ready to assist all customers with the relevant system update next year when the changes to the legislation are finalised.
If you have any questions about the changes please contact the Projects team at email@example.com