Domestic Reverse Charge VAT is changing from 1st March 2021
Are you a VAT registered construction business that supplies or receives construction and building services and these are reported with the Construction Industry Scheme (CIS)? The change that comes into place on 1st March 2021 means that the contractor will be responsible for the VAT instead of the subcontractor. And this changes the way you invoice your customers and pay your subcontractors.
This was previously due to be released in October 2019 however it is being introduced now in the UK on 1st March 2021.
The reason it is being introduced is to minimise missing trader fraud.
So if you are a CIS subcontractor you will cease to charge VAT to your CIS clients.
Check out this helpful video from Pegasus. It’s 45 minutes in total and provides examples and useful tips.
Please also check out our previous blog posts here:
Please contact firstname.lastname@example.org for further information.