The new VAT “domestic reverse charge” (“DRC”) goes live on 1st March 2021 after a period of deferral. It is the most significant change to VAT in construction services in 30 years.From that date, sub-contractors in a CIS chain of supply will cease to collect VAT from other contractors. In its place, a reverse charge system will apply. This makes the buyer of the sub-contractors service liable for VAT accounting in place of the supplier. Join experts from MHA Tait Walker to find out:
- Why this change is being introduced by HMRC.
- What has changed since the DRC was previous announced.
- What services will be covered by the new DRC.
- Practical implications for contractors, subcontractors and end users.
- What businesses need to do to get ready for the changes.