Domestic Reverse Charge delayed to October 2020

The UK Government has announced that the Domestic Reverse Charge for the construction industry has been delayed a year until October 1st, 2020.

A policy update on gov.uk said:

“Industry representatives have raised concerns that some businesses in the construction sector are not ready to implement the VAT domestic reverse charge for building and construction on 1 October 2019.

To help these businesses and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 12 months until 1 October 2020. This will also avoid the changes coinciding with Brexit.”

As we announced last month before the delay, the work on our Domestic Reverse Charge module was complete and ready to be implemented for the small number of our customers it was expected to affect.

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 projects@meritsoftware.co.uk

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