VAT domestic reverse charge delayed to March 2021

The introduction of the domestic reverse charge for construction services will be delayed for five months from 1 October 2020 until 1 March 2021 due to the impact of the coronavirus pandemic on the construction sector.

There will also be an amendment to the original legislation laid in April 2019 to make it a requirement that for businesses to be excluded from the reverse charge because they are end users or intermediary suppliers they must inform their sub-contractors in writing that they are end users or intermediary suppliers. HMRC says this reflects recommended advice in its guidance and brings certainty for sub-contractors as to the correct treatment for their supplies. If followed it will remove a concern that HMRC may seek to challenge the reverse charge treatment where a business that qualified as an end user or intermediary supplier had not given any notification...