Reverse VAT begins next week
From 1 March 2021, businesses involved in buying and selling construction services will become liable to a domestic VAT reverse charge on certain supplies of construction services.
HMRC understands that implementing the reverse charge may cause some difficulties and has said it will apply a light touch in dealing with any errors made in the first 6 months of the new legislation, as long as businesses can show they are trying to comply with the new legislation and have acted in good faith.
It is crucial that ECA Members understand these changes and are aware of:
- whether they are affected by the VAT reverse charge
- whether they fall into the category of ‘specified construction services’
- what they need to do prepare from organisational and accounting perspectives
- their responsibilities if they must apply the VAT reverse charge
- in what circumstances they must apply the VAT reverse charge
ECA has produced a range of guidance notes and resources for Members to understand and implement these provisions. Click the links below for more.
Resources and materials for Members include:
*ECA Member-only content