Construction sector domestic VAT reverse charge takes effect next week

Feb 22, 2021

Readers are reminded that the construction sector domestic VAT reverse charge which was originally delayed one year from 1 October 2019 to 1 October 2020 and further delayed to 1 March 2021 due to the pandemic takes effect next week.

From 1 March 2021 the domestic VAT reverse charge must be used for most supplies of building and construction services. The charge applies to standard and reduced-rate VAT services:

  • for individuals or businesses who are registered for VAT in the UK; and
  • reported within the Construction Industry Scheme

More information is available on GOV.UK.