In July we gave an update on the domestic reverse charge VAT scheme for construction and building services. 

We wanted to make sure that all businesses registered for VAT that are in the construction sector and building services were aware of the changes.

This is particularly important as the process of ensuring that the correct person in the supply chain was quite complicated.

Earlier this month the HMRC everyone that the introduction of the domestic reverse charge for construction services is to be delayed for a period of 12 months. To read the detail about this, click on this link – Revenue and Customs Brief 10 (2019) domestic reverse charge VAT for construction services – delay in implementation.

The delay is a result of lobbying by the construction industry. The view was that companies were not ready for this significant change and needed more time to prepare. 

The HMRC stated that they had taken into consideration all views and they would delay the change until 1st October 2020. The additional benefit is that we should have a clearer picture of how Brexit will impact businesses by then.

It is important to note that over the coming year, the HMRC will be focusing resources on identifying and tackling existing perpetrators of the fraud. So, it is crucial that if you are unclear of your VAT responsibilities, you seek advice as any errors could be construed as fraud. 

If you work within the construction or building services and you would like advice on your responsibilities regarding VAT or want help to prepare for the change next year, please do contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..