Mairéad Warren de Búrca 25 Feb 2021
The VAT domestic reverse charge (DRC) for building and construction services will become effective from 1 March 2021.
The VAT domestic reverse charge (DRC) for building and construction services will become effective from 1 March 2021. Affected businesses (both suppliers and customers) will therefore now need to ensure they are fully prepared for the upcoming changes and reflect the correct VAT position within their contracts, invoicing and accounting processes.
Our article highlights the main changes and what businesses will need to be doing to meet HMRC’s requirements in respect of existing contracts which span 1 March 2021 and contracts going forward. This is likely to bring significant changes to your accounting and cashflow position, so you need to be ready for this. This DRC may impact those who would not typically consider themselves to be involved in construction services. Our next article will include details of the types of services impacted by DRC.
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